Joint Tenancy with Aunt and Inheritance

Discussion in 'Wills, inheritances and gifts' started by admc2017, Apr 20, 2017.

  1. admc2017

    admc2017 New Member

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    My aunt recently went in to a nursing home due to dementia and its fallen to me as her only nephew (and power of attorney) to make her house and paper work secure. Among her files was the deeds to her cottage, on which I am named as Joint owner -news to me! The house was bought about 20 yrs ago when I was 10. How is this going to pan out with inheritance tax when the time comes, I've never lived in the house fulltime except to care for my aunt when she was sick. Im sure she has a will but dont know contents
     
  2. Vanilla

    Vanilla Frequent Poster

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    When she put it in your joint names, that was a gift of half the value to you. If you are registered as joint tenants, you will automatically inherit her half share when she dies, regardless of what is in her will. If as tenants in common, then it will depend on her will or next of kin if she dies without a will. If she relies on the fair deals scheme for nursing home care her half share of the house may be charged in favour of the hse, and you will have a year after she dies to pay it off. As a nephew, you are only entitled to a group B threshold,so currently 32500 from an aunt without paying CAT, but of course the prior gift will be taken into account and will reduce that threshold. Favourite nephew relief really only applies to a business/farm.
     
  3. SirMille

    SirMille Frequent Poster

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    That seems quite unfair.
     
  4. dereko1969

    dereko1969 Frequent Poster

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    Well, poor normal folk don't have IBEC/IFA lobbying Government on their behalf, though perhaps our TDs should be doing that!
     
    SirMille likes this.
  5. admc2017

    admc2017 New Member

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    Thanks for that Vanilla, house will have to be sold so to pay the HSE and the Taxman.
     
  6. cremeegg

    cremeegg Frequent Poster

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    Maybe not.

    The max amount that is due on a home is 22.5 %. Thats on her half so 11.25% of the value of the house.

    The first €36,000 of assets is disregarded so if she has no other assets there will only be a Fairdeal bill on 11.25% of the value of the cottage over €320,000.

    As for the tax due on your inheritance, well the tax is due not on half the property value but on the total value of what you inherit. That might be very little, who is going to buy a half share of a house ?

    You need proper advice, it is possible that the total amount due for tax and fair deal may be quite low.
     
  7. Vanilla

    Vanilla Frequent Poster

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    Last edited: Apr 28, 2017
    Is dwellinghouse relief a possibility? Can you move in/do you have an interest in any other property

    Cremeegg, what is the reference to value over 320,000?
     
    Last edited: Apr 28, 2017
  8. cremeegg

    cremeegg Frequent Poster

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    A mistake, apologies.

    It should be €72,000. 50% is €36,000 which is disregarded. So anything above that would be in the fair deal net.