Voluntary transfer.

Tilikum

Hello All,

Supposed to be going into the solicitor in the morn to have my Dad's house signed over to my name. He has vascular diamentia. Could someone please tell me what tax I'll have to pay, if any? Also, how much would the solicitor charge?

Sorry for the silly questions but I've never had to visit a solicitor before.

vagazzled

You can receive 225k value in assets without tax- from a parent. AFAIK it's gone up to 250k recently.I don't know how much it would cost though, I'd imagine under 1k.
Sorry about your dads health.

SarahMollie

Would a tax liability only arrise if the house is sold? It would seem lousey if you're only taking ownership for medical reasons and then get landed with a tax bill.

Are you going to live in the property yourself?

Would power of attorney be a better fit?

Ask solicitor to outline fees before you being, but I would think 1k should be more than enough.

NinjaTruncs

If you have lived in it for a number of year, not sure how long, and you don't have an interest in another property, I believe it can be signed over to you without any tax liability.

See here for more info http://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_acquisitions_tax.html

MicktheMan

Tilikum wrote: »

Hello All,

Supposed to be going into the solicitor in the morn to have my Dad's house signed over to my name. He has vascular diamentia. Could someone please tell me what tax I'll have to pay, if any? Also, how much would the solicitor charge?

Sorry for the silly questions but I've never had to visit a solicitor before.

Ask the solicitor about "an enduring power of attorney".

Tilikum

Ok thanks for the replies. So I spoke to the solicitor. Here's what happens - Dad signs over the house and I have to pay stamp duty of 1%.

Luckily there's a way of not paying the stamp duty as neither me or my sisters have that kind of money at the moment. I have to sign a document saying that I'll be living in the house for the next 6 yrs.

If I do move out in 2 or 3 yrs I can just pay the money back then.

SarahMollie

Tilikum wrote: »

Ok thanks for the replies. So I spoke to the solicitor. Here's what happens - Dad signs over the house and I have to pay stamp duty of 1%.

Luckily there's a way of not paying the stamp duty as neither me or my sisters have that kind of money at the moment. I have to sign a document saying that I'll be living in the house for the next 6 yrs.

If I do move out in 2 or 3 yrs I can just pay the money back then.

Good result.

Can I ask, did they explain how they calculate the stamp duty? Do they go on a market estimate at a 2015 value or will if be calculated based on the value in 2018 for example if you move out then?

antoinolachtnai

I would think your father will also need independent legal advice (from another solicitor) and someone will need to pay for I when it is obtained. I am sure the solicitor explained that the legal fees on your side are also going to work out at close enough to one percent of the value of the house and these will also need to be paid in the short term.

Tilikum

SarahMollie wrote: »

Good result.

Can I ask, did they explain how they calculate the stamp duty? Do they go on a market estimate at a 2015 value or will if be calculated based on the value in 2018 for example if you move out then?

I just get a lad out to evaluate the house. He gets onto the solicitor and its 1% of that.

Tilikum

antoinolachtnai wrote: »

I would think your father will also need independent legal advice (from another solicitor) and someone will need to pay for I when it is obtained. I am sure the solicitor explained that the legal fees on your side are also going to work out at close enough to one percent of the value of the house and these will also need to be paid in the short term.

Yeah it was Dad's solicitor we were with yesterday. I have to get one to represent myself.

holly_johnson

What stage is your Dad's dementia at? If it's too advanced, you may not be able to sign it over as he won't be legally capable of understanding what he's signing. My Mam has vascular dementia too, and it was left too late to get a power of attorney so I'm currently shelling out big bucks and years of time to get her made a ward of court.

If you're doing this transfer to avoid the house being considered an asset of your Dad's for the Fair Deal scheme, be careful. I know the HSE will look into all of this when you're applying for the scheme and there is a fairly lengthy time after the transfer of the house where they will still consider it an asset for the purposes of the scheme.

Tilikum

Another query on this.....

My Dad wants to sign the house over to me alone (not my sisters as he thinks they have their own homes)

Could Dad sign the house over to me then I go to the bank get a mortgage & give my sisters money? Would they have to pay some sort of tax?