What would Happen?

Glacier

What if I was 23, an only child, my parents are both deceased. If I inherited the family home & was looking to make a will, my Aunt is the closest person to me.
For tax reasons I wouldn't be able to leave her the house, she wouldn't have enough to buy it and would probably have to sell it.
How long would it take before she would be able to sell it. Would the will have to be finished (1 year later), before the house could be put up for sale(which could take another year)?
My Aunt and Uncle own their own house and inherited another which is in the process of serious work. Would they be able to take out a loan to buy my house, if they wanted to? If they wanted to keep my house, what would be the easiest way to do this? Can anyone Help?

Noelie

Well isn't inheritance tax 20% so say the house is worth 400k the tax would be 80K, if the house is going to be rented out I'd say they could easily get a mortgage to cover the tax, they would then use the rental income to pay the mortgage on the house.
Seeing as they have two houses already it would depend on the amount of cash they owe on them.

Glacier

They own both houses & don't owe anything on them.
My Aunt's twin Sisters feel they house my Aunt inherited should have gone to them. My Aunt has said before that she would be happy to leave it to them or at least let them live in it (the currently rent accomodation), but it was left to both Aunt & Uncle, he wants to fix it and rent it out.
They have said before that mine is a better house than theirs, it is next door to my Uncle's mother. They moved house a couple of years ago, I don't think they would move again, sell their house, move would be a lot of hassle.
Would they take out a mortgage on my house and rent it out?
All help Welcome.

OTK

Some solicitors are also tax advisers. You can be a tax adviser without being a solicitor.

If you want to find a tax adviser contact the Irish Tax Institute to find somebody qualified. I used BDO Simpson Xavier once and they were OK. Cost me €1,000 for some advice.
http://www.bdosx.ie/
http://www.taxireland.ie/dublin.asp

if you don't know the name of a solicitor, ask the law society http://www.lawsociety.ie/ . A solicitor can help you draw up a will.

Before engaging anyone for advice, ask them to give you a written estimate of the cost of the advice. Otherwise they may just charge you anything. Ask them to tell you approximately how much the advice will cost in total- not 'we charge an hourly rate of X and your bill could be anything'.

You might not like the idea of paying €1,000 for advice, but obviously it could save you a lot more in the future. If you go to a broker who doesn't charge you anything because he's such a nice guy, then he'll probably skin you by advising that you do a load of dumb things that make money for him and cost you money in the long term.

I've no idea why you are concerned about whether your relatives could afford to inherit property from you without having to sell it to pay taxes.

This would be their problem and I can think of worse problems.

Have your relatives asked you about your will?

Victor

Seeing as your aunt has already inherited and presumably used all allowances, I imagine something imaginative could be done to provide for the twins, should anything happen.

Potentially you aunt passes the house she inherited (presumably from parents) and she then inherits your house.

Of course the allowances from nephew to aunt is much more modest than parent-child.

Glacier

Victor wrote:

Seeing as your aunt has already inherited and presumably used all allowances, I imagine something imaginative could be done to provide for the twins, should anything happen.

Potentially you aunt passes the house she inherited (presumably from parents) and she then inherits your house.

Actually no, it was from an Aunt, she still owes €30,000 on it.

Glacier

When you say passes, could she just hand it over to them? I think it would be more likely she would let them live in it than hand over the ownership.

Glacier

So, what else could happen?

OTK

If you really want, you could take out a life insurance policy that would pay the inheritance tax in the event of your death. Let's say 20% of 750,000 or 150,000 cover.

Your aunt would be made the beneficiary of this policy, so that if you died before your aunt, she would receive a payout sufficient to cover her tax bill. Presuming you are in good health, this isn't going to cost much because of your age.

I still have no idea why you would worry about this.