Inheritance tax due on house still lived in by father?

S

Sunnysoutheast

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My husband's mother passed away without making a will. The house was owned by the mother only (although both parents lived there for about 30 years). My husband's father still lives in the house. My husband received a letter to say that he will now own part of the house. Will my husband be liable for inheritance tax on the part of the house he now owns? (obviously he will not go to sell the house while his father still lives in it but he is concerned as to any tax liability he may have as he could be close to the €320,000 threshold in gifts received from these parents). Many thanks.
 
Is your husband close to 320k threshold for gifts from his mother? The allowance applies to each parent separately.

I'm unsure how part of the house has passed to your hus and in the absence of a will, though. You would expect that without a will a will, the estate would pass to your husbands father.
 
@Sunnysoutheast
As there was no will, 2/3 pass to spouse, and 1/3 shared among any children under succession act.

Its quite common scenario.

If all the children are all in agreement, they can renounce their inheritance, so that 100% passes to father. But they have to renounce the entire, for example they can't give up the house but take a share of any cash.

How many children are there? His portion might be very small.
 
RedOnion said:
@Sunnysoutheast
As there was no will, 2/3 pass to spouse, and 1/3 shared among any children under succession act.

Its quite common scenario.

If all the children are all in agreement, they can renounce their inheritance, so that 100% passes to father. But they have to renounce the entire, for example they can't give up the house but take a share of any cash.

How many children are there? His portion might be very small.
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Apologies for the delay in replying, I wanted to try to dig out the letter from the solicitor regarding this.

My husband signed a letter to say that "the ownership of the family home was to be re-registered into the joint names as Tenants in Common of your father (two thirds interest) and brother (one sixth interest) and my husband (one sixth interest)". There are only 2 children in question, my husband and his brother.

Could my husband be liable to CAT on his portion (1/6) of the value of the house?
 
Your husband is entitled to receive €320K from his parents - his 1/6th portion is roughly €53K so if he received anything more than €267K previously he will have to pay CAT on the amount above 320K. I assume his only inheritance was from his parents - there is a different threshold for anything received from other parties.
 
Feemar5 said:
Your husband is entitled to receive €320K from his parents - his 1/6th portion is roughly €53K so if he received anything more than €267K previously he will have to pay CAT on the amount above 320K. I assume his only inheritance was from his parents - there is a different threshold for anything received from other parties.
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Would we need to get a valuation of the house done to see how much it's worth and therefore how much his 1/6 share is worth?
 
Sunnysoutheast said:
Could my husband be liable to CAT on his portion (1/6) of the value of the house?
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Yes, but there are technical issues around it.
He should talk to the solicitor about a deed of family arrangement if he doesn't want to inherit his share now. Its a complex area, but one of those things that someone who deals with would know inside out and know if there's a way around it.

Feemar5 said:
his 1/6th portion is roughly €53K
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OP never stated value of house?

Feemar5 said:
there is a different threshold for anything received from other parties
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And have no influence in this scenario even if there were other gifts / inheritances received.
 
RedOnion said:
Yes, but there are technical issues around it.
He should talk to the solicitor about a deed of family arrangement if he doesn't want to inherit his share now. Its a complex area, but one of those things that someone who deals with would know inside out and know if there's a way around it.


OP never stated value of house?


And have no influence in this scenario even if there were other gifts / inheritances received.
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Many thanks RedOnion for your input. I don't think a deed of family arrangement is possible now as my husband signed the form he was given which gives him the 1/6 share but it might be worth asking all the same. Thanks again.
 
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