My Uncle has me in his will to get his house. I have some questions.

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Cloudd

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So my uncle has informed me that I am down to inherit his house when he passes. My dad is the executor of the will and has confirmed that is on the paperwork. I am due to do a Money Makeover soon to get all cards on the table, but wanted to keep the focus on inheritance options first.

I obviously hope to not 'inherit' anything for many years yet, but he is 83 and with mixed health. I wanted to try to figure out exactly what I have in front of me, when the time comes.

The house value is likely around €350k going on others that sold there over the last 6-12 months.

Am I correct in assuming:

- I have the first €32,500 tax free
- I owe 33% CAT on the balance of €317,500 = €104,775

Am I correct in assuming I have two options?

1. Sell the house immediately
2. Keep the house, pay the above

If #2, what are my options in regards to getting a loan etc?

Thanks in advance.
 
Hi I am not Tax adviser or accountant but might be worth looking at the below or getting advise.

Based on the below . How would you and your uncle feel like, For you to move into the house with him? If he left you the house would it not be nice to be around in his old age and keep an eye on him?

If you own no other Property and have lived in the House as your home for At least 3 years before his death . You can get the following exception from the Tax bill. There is some terms and conditions but you not allowed to sell for 6 years after the fact or the CAT bill will due.

Qualifying conditions for inheritance on, or after, 25 December 2016

Information on inheritance of dwelling house on, or after, 25 December 2016
www.revenue.ie www.revenue.ie

Qualifying conditions for inheritance on, or after, 25 December 2016​

You will be exempt from Capital Acquisitions Tax (CAT) on the inheritance of a dwelling house if, at the date of the inheritance:

  • the house was the only or main home of the person who died (this condition does not apply if you are a dependent relative)
  • you lived in the house as your only or main home for the three years immediately before the date of the inheritance
  • you do not own, or have an interest in, any other house
  • you do not acquire an interest in any other house from the same disponer between the date of the inheritance and the valuation date
  • the house continues to be your only or main home for six years after the date of the inheritance. This does not apply if you:
    • are aged 65 years or over at the date of the inheritance
    • are required by reason of employment to live elsewhere
    • or
    • are required to live elsewhere because of mental or physical infirmity, and this is certified by a doctor.
 
Cloudd said:
- I have the first €32,500 tax free
- I owe 33% CAT on the balance of €317,500 = €104,775

Am I correct in assuming I have two options?

1. Sell the house immediately
2. Keep the house, pay the above
Click to expand...

Yes, the calculations are correct

I think that Revenue will give you some leeway in paying the CAT. But they charge interest on the deferred payment.
 
Cloudd said:
So my uncle has informed me that I am down to inherit his house when he passes. My dad is the executor of the will and has confirmed that is on the paperwork. I am due to do a Money Makeover soon to get all cards on the table, but wanted to keep the focus on inheritance options first.

I obviously hope to not 'inherit' anything for many years yet, but he is 83 and with mixed health. I wanted to try to figure out exactly what I have in front of me, when the time comes.

The house value is likely around €350k going on others that sold there over the last 6-12 months.

Am I correct in assuming:

- I have the first €32,500 tax free
- I owe 33% CAT on the balance of €317,500 = €104,775

Am I correct in assuming I have two options?

1. Sell the house immediately
2. Keep the house, pay the above

If #2, what are my options in regards to getting a loan etc?

Thanks in advance.
Click to expand...
Pity you did not know sooner because seemly you can get an inheritance tax insurance policy that will cover the tax bill If under 80? AIB sells it.
 
Brendan Burgess said:
You may have ten years or more to your inheritance. Plenty of time to start saving up for the bill

If you don't have the full amount saved, you will find it easier to borrow a smaller amount from a Credit Union.
Click to expand...
Or CAT rates may have dropped back to 25% or less ...

Disclaimer: Your home is at risk if you light a fire under the stairs. :p
 
Or your uncle might sell the house in the meantime, forgetting that he has bequeathed it to you in his will
 
Thanks for all the replies.

I appreciate that it could go down many routes, I'm just trying to get as educated / prepared as possible as it would be nice to keep it in the family (like somewhere my own folks could use as they've been a huge aid to my uncle over the years and I'd like to repay them).
 
Yes, but the cost of the policy is about the same as the tax bill :)
 
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