removal of name from deeds

horsebox7

Hi,

Just wondering if anyone knows what the procedure is and what affect removing a persons names from the deeds of my house might be? Originally I purchased my house with my mother 20 years ago and so my name and her name are still on the deeds. I discussed the matter with my mother who is happy for me to remove her name from the deeds.

Thanks

Pat Mustard

Assuming that she is a joint owner of the property, you are talking about a conveyance/transfer of her interest in the property to you. You will need to see a solicitor.

horsebox7

Thanks for that. I am wondering will the money she contributed to the house originally then be seen as a gift and subject to gift tax?

Pat Mustard

Can't give legal advice due to forum charter but you can take advice on the CAT implications in relation to the proposed transfer/conveyance. Try Googling the CAT thresholds on the Revenue website.

seamus

You will likely need to see both a solicitor and an accountant to advise you on the legal and taxation implications of this move.

DulchieLaois

Both you and your mother would have to get seperate solicitors which is double cost - so that no conflict of interest can occur.

Re CAT, i am not sure but you properly have to pay stamp duty as well

and if there is still a mortgage on the property, the bank will have to agree to the removal of her name

Caught in the whole process similar to what you are saying as it is , lots of fun, NOT

Addle

Why do you want to make the change now?

horsebox7

Thanks for your reply. Thankfully the mortgage is paid in full now for some time. If I had originally bought with a partner and the relationship ended and either party moved out and the other stayed would the situation still be the same if both parties bought together and both names were on the deeds?

horsebox7

Also.. Wondering if anyone knows the process of adding and additional party on to the deeds. For example new partner, brother, sister etc.. These people may not even have made any financial contribution to the property. What happens then if they wish to withdraw their names from the deeds?

seamus

OSI wrote: »

Why do you want peoples names on the deeds if they made no financial contribution to it unless you plan on them having a claim on any financial gain from it's sale?

It can be used as a way to safeguard inheritance rights where there is no explicit right to inherit, e.g. by adding a nephew as a joint tenant to the property, ownership automatically transfers to them in the event of the death of the uncle/aunt. In this case the property cannot be passed on in the will where there is a surviving joint tenant.

Peregrinus

horsebox7 wrote: »

Thanks for that. I am wondering will the money she contributed to the house originally then be seen as a gift and subject to gift tax?

No. It's the current value of her share in the house which will be seen as a gift.

brian_t

DulchieLaois wrote: »

Both you and your mother would have to get seperate solicitors which is double cost - so that no conflict of interest can occur.

If the Mother is simply gifting her share of the property to her son does she need a separate solicitor.

Peregrinus

horsebox7 wrote: »

Also.. Wondering if anyone knows the process of adding and additional party on to the deeds. For example new partner, brother, sister etc.. These people may not even have made any financial contribution to the property. What happens then if they wish to withdraw their names from the deeds?

If you "add their names to the deeds" you are making them a gift of a share in the property (unless they pay you money, of course, in which case you are selling them a share in the property). If they then "withdraw their names from the deeds" they are gifting the share back to you. Both the gift to them and the gift back to you are potentially taxable transactions.

Uno my Uno.

Peregrinus wrote: »

If you "add their names to the deeds" you are making them a gift of a share in the property (unless they pay you money, of course, in which case you are selling them a share in the property). If they then "withdraw their names from the deeds" they are gifting the share back to you. Both the gift to them and the gift back to you are potentially taxable transactions.

This is correct, it isn't simply a matter of writing names onto an existing deed or then erasing them it is a case of transferring a share of the property to them which they can then do with as they please (to a certain extent).

So if the house were in your name aloe and you decided to "add your brother to the Deeds," you would actually be giving your brother half the house. What is more you would have no right to "withdraw their names from the Deed" without their agreement as this would be them giving half the house back to you.

It is a significant transaction and shouldn't be done by either you or your mother without a full understanding of the possible consequences both legally and in terms of the tax liabilities. You should both see independent solicitors.

DulchieLaois

yes, seperate solicitors are required as ur mother and you are 2 seperate parties