Inheriting property while parent is alive

[dublinaam]

It is the plan from my mother to leave her own PPT and her parents house which she inherited 15 years ago to her 4 children. The value of both houses would be under €1.2m so the €310k allowable threshold per child will not be breached.


My brother has lived in the 2nd home for 15 years and pays rent. He would ideally like to own this himself and get a mortgage to buy the other 3 children out. The other 3 children would have no objection to this.


Is there a way to do this while my mother is alive without having a huge tax bill? Or does my brother have to wait until my mother dies and the will is executed?

 

[Joe_90]

She could sell him the property and gift the proceeds to the other siblings while she is still alive. The issue will be an exposure to Capital Gains Tax on any increase in value from 2003 to 2018. There will also be stamp duty on the transfer.

 

[noproblem]

Have a chat with your mum and siblings, together. If your mum is the recipient of the rent it might be that she needs it for security. I'm sure between you all there's a solution and who knows, maybe even one of you who might cause a problem or two. Might be good for mum to know this now while alive. Then again it could all be easily solved in this manner without any upsets.