Inherit house or get it signed over now?

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stayorgo

Registered User
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Hi All,

We moved into my family home with my dad in 2016 as we had mortgage difficulties and I will inherit this house from my dad. We have lived here since 2016. We have rented out our own house since 2016. I'm just wondering is it better to get the house signed over now or just inherit it? I would like to get a small mortgage of approx €50,000 to carry out some home improvements on this house and I obvs can't get a mortgage until the house is in my name. My dad is happy either way, the house is allready willed to me but he's happy to sign it over now if I want also.

Questions I have:
1. I think the value of the house will be around €320,000 so will fall below the parent/child inheritance tax so therefore no CGT?
2. Will there be stamp duty to be paid if we get the house signed over now? If so is it 1% of the house value? Am I right that there's no stamp duty on the house if its inherited?
3. CAT I'm totally confused on this, what would be due based on the house being valued at €50,000?
4. I know we will need 2 solicitors for the transfer, I'll have to get an auctioneers valuation and I'll have to pay the land registry fee for the transfer. Are there any other costs I haven't thought about.

Many thanks all for your help and time
 
As this is your father's principal private residence, there is no CGT on any gain he makes if he gifts the house to you

In general, I would be against him gifting it now as that could be detrimental to his financial situation in the future.
 
stayorgo said:
3. CAT I'm totally confused on this, what would be due based on the house being valued at €50,000?
Click to expand...

The house is worth €320,000 so it's completely irrelevant what the CAT would be if it were worth only €50k or, for that matter, €5m.

If you propose to buy it from your father for €270k, then you will be deemed to have received a gift of €50k but that is not what you are proposing.

Brendan
 
Agree with the above comments about your father losing control over his home but perhaps you could stipulate in his Will that he remains in the house for as long as he lives.

If he were to gift it to you now and remain alive for the next 5 years it would not be taken into account for any Fair Deal arrangement that may be necessary to look after him in the future in a nursing home.

Citizens Information Fair Deal

Transferred assets​

The assessment will look at assets that you have transferred (for example any land, money or property you have given to another person) since applying for State support or in the 5 years before the application.
 
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