inheritance and stamp duty

L

littlelau

Guest
Hi all, new to this thread just looking to get some information. My MIL has asked me to look into the transfer of land as a gift or as inheritance so i am trying to get some information. About 3 years ago we got a gift of some land, valued at €120,000.

we live in the house with my mil, for the last 3 years and i believe that this will be exempt from both inheritance and stamp duty is that correct?

the remainder of the land will be below the treshold allowed, so am i correct in saying that we wont pay any inheritance tax? what about stamp duty? i read an article in the sunday business post and the author said that if it is inheritance it is exempt from stamp duty - does that mean that we wont have to pay anything? i understand that we can reduce the value of the asset by 90% once it is agricultural and 80% of our assets are.

just looking for some advice - thanks in advance
 
Its hard to work out what has happened, what may or may not happen and what you are asking from your question.

What land did you get from whom 3 years ago?
What house do you live in, is it built on the land mentioned above, who owns it and is it intended that it may at some time be transferred to you/your husband/wife? Both?

Remainder of land - what land? Is there a farm involved? Are there other offspring?
Are you trying to work out if it makes more sense for MIL to gift property land now or leave it in will? If she gifst land/property to you now, what guarantees does she have about her future and wellbeing?

If you can be more clear, it might be easier to give you an answer.

mf
 
hi
we got a gift of land from mil 3 years ago. we live in mother in law's house, it is owned by my mil and it is intended that my husband will own it in time.
the remainder of land is the farm land, my husband has a sister but she has already gotten her inheritance by way of land, and a site sold for her.

Yes mil would like to know which is more beneficial for her and us - to gift land/house now or for my husband to inherit it on her passing. If she was to gift it, she would be looked after until her passing
 
It would be better for your MIL from a personal financial safety perspective to hold on to her assets during her lifetime. Eaten bread is soon forgotten.

However on the tax side:

Transfers during life time incur CGT, CAT and stamp duty. Inheritances are free from CGT and stamp duty.

However depending on his circumstances your husband might qualify for young trained farmer exemption from stamp duty. Also there are specific exemptions for farmers from CGT in these circumstances. Much will depend on the value of the land, the time owned and so on. So it might be that a lifetime transfer could be free of stamp duty and CGt. However what is the incentive? Are there still installation grants available for young farmers? This is something your husband should obtain professional advice on.

As you mention you can benefit from various exemptions on death too. Agricultural relief on CAT, the relief for someone already residing in a house who continues to reside there, no stamp duty, no CGT.

Really the question is too broad and indeed too important to not seek professional advice on.
 
Another way to go and to protect Mil, is for the house to be signed jointly between Mil and your husband. Duty is paid on the transfer, then when she dies it will be his automatically under joint tenancy, but until then Mil still has a half share and a say.
 
If i was advising your MIL i would tell to make a will and this will protect her interests and intentions and it most likely will be the most tax efficient way of doing it also.
 
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