House Transfer from Parent to Child.

[Indigo16]

Hi there,

Just looking for advice. I build a large extension onto my mother' house and am currently living there. My mother wants to transfer the house to myself now, but retain the right of residence and on her solicitor's advice, say that I will agree to pay any monies owed to the HSE/Fairdeal scheme if they occur.


My queries are:
I put in around 180k to the build (including the 40k), is there any way I can protect this money rather than paying 7.5% of it to the HSE in the event of the fair deal scheme? Hopefully she won't need nursing home care, but I just want to see if that occurs. I know there is a 3 year cap on property.

The house is worth around 360k now, for the two parts of the house.
Any tips or advice on how best to proceed?

Thanks!

 

[Clamball]

You will need your own independent legal advice to make sure the agreement your mother’s solicitor wants you to sign is also in your best interest.

The bit I would be worried about is you being responsible for any % of her savings if she undertook a fair deal. I cannot see how that benefits you. Would you end up selling the house to pay that?

House value €360K
You have contributed €180K
You are paying mother €40K loan
You pay no rent or other household expenses? Value?
Your siblings will turn to you to care for your mother as her health declines - value?
You get a gift of the house worth €360K
You pay gift tax €8.5K and all household expenses from then on.
Your mother has a right of residency - value ?
If your mum takes up fair deal within the timeline of house hand over you will agree to pay the 7.5% value of house each year to HSE €27K per annum.
And you also pay HSE and value of her cash savings that they will take annually if that need arises?
How much is your mother planning to leave to your siblings?

There is obviously a lot to consider here, and will you end up better off or not that your siblings?