Inheriting parents house

cazzak79

Hi everyone
I live in Dublin with my partner my parents live in Galway we have a house my parents in there 80's
We would love at some stage in the future move back and live in my parents house therefore is inherit the house - rest of family have there own houses etc
So if I inherit the house do I pay any tax on the house thanks

StillWaters

Do your parents know your plan to inherit the house?
If the house value is below €225,000 there is not inheritance tax payable.

cazzak79

StillWaters wrote: »

Do your parents know your plan to inherit the house?
If the house value is below €225,000 there is not inheritance tax payable.

Yep they do think its around that with the property tax

the groutch

I'd be more concerned about the particulars of their will.
If it's left to all their children jointly you'd have to buy out everyone else's share.

hfallada

Would you get them to sign it over to you now since property prices are low. Because if receive it in a couple of years most likely the house will be worth more and Capital gains tax will be a higher. I think its going up to 37% in decembers budget from 33%

Eric Cartman

hfallada wrote: »

Would you get them to sign it over to you now since property prices are low. Because if receive it in a couple of years most likely the house will be worth more and Capital gains tax will be a higher. I think its going up to 37% in decembers budget from 33%

if the OP has any other siblings that would cause all out war with most families, definitely not a good idea.

cazzak79

Thanks everyone can't imagine me fighting with anyone for it thanks for the advice

Rhys Essien

OP,are you away on another planet or what?

So just because you dont have a house and the rest of your family do,you will definetly be left your parents house in their will.And the others will be happy with all this.

Can you tell us what makes you so sure.

cazzak79

Ok all I asked was about the inheriting tax the how I know I'd inherit the house that's between me and my parents thanks for the advice!

Ray Palmer

cazzak79 wrote: »

Ok all I asked was about the inheriting tax the how I know I'd inherit the house that's between me and my parents thanks for the advice!

I think that is fair enough but it is also between you and your siblings. I have seen massive family feuds over such things. For your own sake I would clear it with your siblings too before your parents die. You could prevent a lot of bad blood.

If the house is over the threshold you get a bigger allowance on what you can inherit if it is also your primary residence.

zef

It's your parents house, and they are in their 80's. And you are scheming and dreaming of 'inheriting' it from them. I find your attitude and sense of entitlement reprehensible. And I think they should be allowed write their will in peace without any pressure from you asking them to leave you the house.

Both your parents are alive, and you don't know what will happen in the future. They could live happily and healthily for another 15 years, or you could be faced with nursing home / care costs if they become ill.

Your parents deserve peace at their age, I hope you're not bothering them with this rubbish.

tinkerbell

cazzak79 wrote: »

Thanks everyone can't imagine me fighting with anyone for it thanks for the advice

You are being incredibly naive, OP. Once wills / inheritance come into it, it brings out the nastiest in people. Do you really think that your siblings aren't gonna fight you on this if you're just thinking you deserve it since they already have their own houses? Unless your parents have spoken to every one of their children and said they are leaving it to you, don't take it for granted. Yes they may have their own houses but if it's worth over €200k, they could get that money from selling it.

valleyoftheunos

The OP knows his familly, it could easily be the case that none of his siblings have any interest in the parents house.

In relation to the OP's original query, he will be liable to pay capital aquisitions tax on any property he inherits from his parents, there is however a tax free allowance. Currently between parent and child that allowance is €225,000 that allowance may well be reduced in the future.

murphaph

zef wrote: »

It's your parents house, and they are in their 80's. And you are scheming and dreaming of 'inheriting' it from them. I find your attitude and sense of entitlement reprehensible. And I think they should be allowed write their will in peace without any pressure from you asking them to leave you the house.

Both your parents are alive, and you don't know what will happen in the future. They could live happily and healthily for another 15 years, or you could be faced with nursing home / care costs if they become ill.

Your parents deserve peace at their age, I hope you're not bothering them with this rubbish.

You don't know anything about the guy/girl.

My aunt inherited my grandparents house because she had taken care of my grandmother and grandfather for decades. It was seen by my mother and her other siblings as only fair for the effort she'd put in down the years. Might be the same with the OP or something similar...we don't know, so judging someone like that is pretty shallow.

cazzak79

Ok people not sure where ye got I'd scheme against my parents or siblings
It's been in my family for along time approx my great great grand dad that built it
It's a farm house my brother had house on the farm and is to have the house
There will be no kicking my parents out or sending them to nursing home me and my family will look after them
All I wanted was info on the inherit tax
Thanks for the replies ... But please close this thread thanks

UncleChael

zef wrote: »

It's your parents house, and they are in their 80's. And you are scheming and dreaming of 'inheriting' it from them. I find your attitude and sense of entitlement reprehensible. And I think they should be allowed write their will in peace without any pressure from you asking them to leave you the house.

Both your parents are alive, and you don't know what will happen in the future. They could live happily and healthily for another 15 years, or you could be faced with nursing home / care costs if they become ill.

Your parents deserve peace at their age, I hope you're not bothering them with this rubbish.

Mind your own business it has nothing to do with you, the OP asked a question and he got an answer.

D3PO

UncleChael wrote: »

Mind your own business it has nothing to do with you, the OP asked a question and he got an answer.

This forum is about debate and opinion amongst other things. The other poster has every right to pass comment weather you like it or not.

conorhal

valleyoftheunos wrote: »

The OP knows his familly, it could easily be the case that none of his siblings have any interest in the parents house.

In relation to the OP's original query, he will be liable to pay capital aquisitions tax on any property he inherits from his parents, there is however a tax free allowance. Currently between parent and child that allowance is €225,000 that allowance may well be reduced in the future.

What I think the OP is asking however is if you can completely mitigate any inheritance tax by moving back in.
I remember hearing that if the family home is your principle residence for three years prior to inheriting it then you don't pay (oer perhaps pay less) inheritance tax. Hopefully sombody that knows the law can clarify this.

As for some of the sniffy responses, the OP mentions moving in, not kicking the parents out to move in. They could be talking about moving home to care for elderly parents and how this may effect their tax liability.

Pawwed Rig

conorhal wrote: »

I remember hearing that if the family home is your principle residence for three years prior to inheriting it then you don't pay (oer perhaps pay less) inheritance tax. Hopefully sombody that knows the law can clarify this.

There are alot of conditions around this exemption and it is unclear whether the OP could avail of it. In the first post she says 'we have a house'. If she does then she cannot avail of the relief.
Kind of confused reading the first post though so I maybe picked it up wrong as she also says her family have their own houses thereby implying that she does not. You are correct with the three year rule

StillWaters wrote: »

If the house value is below €225,000 there is not inheritance tax payable.

Not strictly true as it would depend on prior gifts.

valleyoftheunos

conorhal wrote: »

What I think the OP is asking however is if you can completely mitigate any inheritance tax by moving back in.
I remember hearing that if the family home is your principle residence for three years prior to inheriting it then you don't pay (oer perhaps pay less) inheritance tax. Hopefully sombody that knows the law can clarify this.

As for some of the sniffy responses, the OP mentions moving in, not kicking the parents out to move in. They could be talking about moving home to care for elderly parents and how this may effect their tax liability.

Pawwed Rig wrote: »

There are alot of conditions around this exemption and it is unclear whether the OP could avail of it. In the first post she says 'we have a house'. If she does then she cannot avail of the relief.
Kind of confused reading the first post though so I maybe picked it up wrong as she also says her family have their own houses thereby implying that she does not. You are correct with the three year rule

It's not too complicated, someone receiving a house can qualify for dwelling house relief if they have been living in that house for at least 3 years. This would mean that they would not pay any inheritance tax (more properly known as Capital Aquisitions Tax) on the property.

However you cannot avail of Dwelling house relief if you own any other property even if you don't live in that other property.

Pawwed Rig

valleyoftheunos wrote: »

It's not too complicated, someone receiving a house can qualify for dwelling house relief if they have been living in that house for at least 3 years.

Indeed but another poster suggested taking a gift now before CGT goes up which would mean the OP could not claim the relief. Also the size of the site is important as is the age of the OP.
Tax is a very individual thing which is why I would be reluctant to confirm they can get this relief without full knowledge of the OPs personal circumstances.
Alot could happen in the next three years that could change the OPs entitlement.

valleyoftheunos

Pawwed Rig wrote: »

Indeed but another poster suggested taking a gift now before CGT goes up which would mean the OP could not claim the relief. Also the size of the site is important as is the age of the OP.
Tax is a very individual thing which is why I would be reluctant to confirm they can get this relief without full knowledge of the OPs personal circumstances.
Alot could happen in the next three years that could change the OPs entitlement.

For Dwelling House Relief? How so?

Obviously I'm not giving advice to the OP, merely setting out the requirements of the relief. Naturally they should see a Solicitor before acting.In my reading of the OP Dwelling house relief doesn't arise at all but seeing as it was brought up I addressed it in general terms. Its pretty obvious that if the OP were to take a gift of the house now they would not be able to avail of DHR as they have not being living there. For the sake of completeness I should also point out that if, having availed of DHR a person were to sell that house within the next six years they would have to pay the tax that they did not pay due tot he Relief.

Pawwed Rig

valleyoftheunos wrote: »

For Dwelling House Relief? How so?

The grounds must be less than an acre. Anything in excess does not qualify for the relief. Now if the parents have a farm we are into another kettle of fish:D

Even if the OP has been living the 3 years they cannot get the relief in the event of a gift unless they are caring for their parents etc etc. If the OP is >55 the 6 year rule does not apply (which is possible if her parents are in their 80's).
What I mean is you know what you are talking about but it is not a straight forward one size fits all relief.
So yeah OP see a tax advisor

Pawwed Rig

valleyoftheunos wrote: »

For Dwelling House Relief? How so?

The grounds must be less than an acre. Anything in excess does not qualify for the relief. Now if the parents have a farm we are into another kettle of fish:D

Even if the OP has been living the 3 years they cannot get the relief in the event of a gift unless they are caring for their parents etc etc. If the OP is >55 the 6 year rule does not apply (which is possible if her parents are in their 80's).
What I mean is you know what you are talking about but it is not a straight forward one size fits all relief.
So yeah OP see a tax advisor