signing over a house

SLselfbuild

hi a friend asked me to help him look into a situation he currently finds himself in. he lived wit his father who recently passed away and the will was made years ago which states the house is to be sold and devided between him and his 2 siblings. both siblings want him to stay in the house but they know he hasnt got the resourses to buy them out so they want to give him the house. He is now afraid he will end up paying tax but dosnt know who to talk too. Any one know how this works. Would I be best pointing him in the direction of revenue or a solicitor. If this question isnt allowed i apoligise and i will take it down.

Pat Mustard

SLselfbuild wrote: »

He is now afraid he will end up paying tax but dosnt know who to talk too. Any one know how this works. Would I be best pointing him in the direction of revenue or a solicitor.

Tell him to go to a good solicitor. He could take legal advice about dwellinghouse relief as he is at it.

schemingbohemia

Sorry not sure of technical wording but can the other two siblings disavow their interest and thus the inheritance would go from father to son thus availing of the higher threshold. I'm not sure how Revenue would view this though.

How much is the house worth? This would impact on the thresholds.

I would think you might be better off asking in taxation rather than here as it's really a taxation issue.

SLselfbuild

schemingbohemia wrote: »

Sorry not sure of technical wording but can the other two siblings disavow their interest and thus the inheritance would go from father to son thus availing of the higher threshold. I'm not sure how Revenue would view this though.

How much is the house worth? This would impact on the thresholds.

I would think you might be better off asking in taxation rather than here as it's really a taxation issue.

cheers for the reply i advised him this morn to get a solicitor to act on his behalf who has experience in tax issues. So hopefully they will help him out.

SLselfbuild

The Mustard wrote: »

Tell him to go to a good solicitor. He could take legal advice about dwellinghouse relief as he is at it.

Cheers for reply hav told him what u said so is gonna get professional advice on this.

banie01

schemingbohemia wrote: »

Sorry not sure of technical wording but can the other two siblings disavow their interest and thus the inheritance would go from father to son thus availing of the higher threshold. I'm not sure how Revenue would view this though.

How much is the house worth? This would impact on the thresholds.

I would think you might be better off asking in taxation rather than here as it's really a taxation issue.

Scheming Bohemia raises a good point, that will allow a fairly straight foward means of transfer and minimising costs.

A beneficiary can renounce their inheritance leaving it to be distributed amongst the remaining beneficiaries.
So in the case of your friend, if his 2 siblings renounced their portion of their legacy the whole estate would revert to the remaining sibling.
This also allows better tax planning as the Inheritance tax threshold would be on the basis of a parent to child transfer meaning a much better Tax free amount allowable compared to a sibling to sibling transfer.
There is a good and simplified guide to basic inheritance/CAT tax threholdshere.

All in all a good solicitor will be able to sort the situation quickly and with minimal Tax impact too(subject to the Estate value of course)

Pat Mustard

schemingbohemia wrote: »

Sorry not sure of technical wording but can the other two siblings disavow their interest and thus the inheritance would go from father to son thus availing of the higher threshold. I'm not sure how Revenue would view this though.

I agree that this is probably the most practical way of getting the job done.

schemingbohemia wrote: »

I would think you might be better off asking in taxation rather than here as it's really a taxation issue.

I'd agree with that too, but the OP will need advice from a solicitor who can take all of the relevant details, look at the title, examine the will, speak to the siblings, etc. He is going to do that anyway, it seems.

nompere

schemingbohemia wrote: »

I would think you might be better off asking in taxation rather than here as it's really a taxation issue.

If you ask this question in the taxation forum, the thread will be closed and the poster (and any responders) will be banned. They don't do property tax questions in that forum!

valleyoftheunos

There is a Capital Acquisitions Tax issue here, a good solicitor is the best place to go.