living gifts

[fredandginger]

My mom is in a nursing home and is a part of the Fair Deal Scheme. Her house is sitting idle. She wants to sell the house and gift the money to us, her four children. We have not received any gifts from her before. What tax will we have to pay on the money?

 

[Joe_90]

You get a lifetime threshold for gifts from your parents of €280k so if you don't get more than that then there is no Tax.

There may be implications from the fair deal scheme making a claim.

 

[Gordon Gekko]

You get a lifetime threshold for gifts from your parents of €280k so if you don't get more than that then there is no Tax.

There may be implications from the fair deal scheme making a claim.

It's €310k now Joe...plus there's the €3k Small Gift Exemption each year.

 

[Slim]

Hi fredandginger. If your mum sells the house, the value or price received will continue to be levied at 7.5% indefinitely rather than the maximum 3 years if it remains in her possession. Food for thought!

 

[Marsha25]

Slim is right. Proceeds of the house will be seen as savings (even after being distributed) and will be assessed for Fair Deal, whereas the house won't be after 3 years. My father sold his house after moving to the nursing home. We couldn't continue to maintain it and none of us were going to move to it so it was the best option in the circumstances. It is difficult to keep a house in good shape so selling can be a good idea. If your mum does sell make sure she keeps a good chunk of it to continue paying her nursing home fees into the future. You will have to declare any gifts after she has passed away when sorting probate but won't be liable for tax unless her estate is worth a fortune.