Then it gets pretty awkward as she could claim that some of the value of the house is hers.The plan would be, that my sister can do what she wants with the house, to make it livable for her for her lifetime.
You don't say what your sister's age and income are, but most adults have some income, even if it's very small. You could lend her €80k over 20 years at 1% and her repayments would be €370 a month. No one needs any cash right now, basically you give her the house in return for a personal loan to be repaid. There is stamp duty and legal fees of course but this is one way for her to take ownership of the house.She wouldn't have the funds at all to buy the house ( I wouldn't feel right selling it to her), or any house or even rent any place at the moment.
I know you're sentimental about the house but with my pseudonymous outsider's perspective I suspect your own kids would be much happier with cash than with an €80k house in need of renovation at some unlikely point in the future.I wish to retain ownership of the property, so I can then pass it on to my own family.
My mother has Willed her house to me (she is a widow). She is quite unwell now and I am trying to prepare my mind for upcoming eventualities.
In practice you can charge your sister a small notional rent and if its under €3k then it is covered by the small gifts exemption and there are no tax implications for anyone.
I said a "notional" rent.If no rent is paid, in theory Sister A would be getting a gift from Sister B, but it would be covered by the small gifts exemption and no CAT would arise for Sister A.
The will could also be structured in such a way that the OPs sister is entitled to live in the house until her death where it then passes to the OP.Your mother is still alive?
Where is she living?
If she is still in the house, shouldn't it be improved now to make it more comfortable for your mother?
Where is your sister living?
It seems a bit odd to me that your mother is leaving you a house you don't need while leaving nothing to her other daughter, who does need somewhere to live.
What is your sister's marital situation? Is she married? Does she have children?
For a house worth €80k , it would seem that the most logical thing to do would be for your mother to leave the house to your sister.
If your sister has no dependants, she could leave the house to you and your children in her will.
Brendan
It is indeed confusing, perhaps needlessly.
AFAIK You can allow your sister to live in your house without charging her rent if you wish.
How many such cases have you come across?While I salute the generosity of the OP. In the majority of these situations I hear about it never ends well when a family member is left in a property they don't own like this.
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