Loan or gift to Daughter on deposit for joint purchase of a house

[Mapara]

If a mother wants to give 80k to her daughter and partner as a house deposit is it best to structure this as a loan to be repaid through the small gift exemption so as to reduce the CAT implications in years to com rather than just a gift now.
Or is there other things to take in to consideration before committing to this.

 

[Brendan Burgess]

The most important thing is the status in the event of a subsequent breakdown in the relationship.

He will claim that you gave them a joint gift.

So be very careful in what you do.

The easiest is to give them jointly a loan of €80k to be repaid if the house is ever sold.

They should also have an agreement in place specifying who put in what, how much each of them owns, and what happens in the event of a breakup.

Brendan

 

[jpd]

So sad, and so true

 

[Steven Barrett]

You will have to declare to the bank that it is a gift. Otherwise, it will impact on the amount they can borrow.

Then you have to do another agreement with your daughter and she can pay it off through gift exemption each year (you can also give him €6k a year). Agree 100% with Brendan though, you want an agreement there if they break up.

 

[Mapara]

Would the loan and repayment through the gift exemption be a common practice with in families?


Also I Would be interested in Brendan's suggestion below but how would revenue look at it.

The easiest is to give them jointly a loan of €80k to be repaid if the house is ever sold.