Capitol gains

mcko

Quick question, my mother died in 2011 and left my family home to me and my 2 kids, a third each, they were 7 and 11 at the time and the house was held in trust for them.
What happens when they are 18 do they get a tax demand for CGT or what happens.


Thanks in advance.

Atlantic Dawn

As far as I know if they sell it they will but if they don't sell it they won't. The gain would be based on the price their share was in 2011 against the profit from the sale price.

dogsears

Not CGT, possibly CAT (Inheritance Tax) but it depends on a lot of things including valuation so you'd be best advised to see a tax consultant.

Water John

I think all three of you are now in the B schedule. You because you hadn't complete ownership. Threshold for each of you €32,500.
As said above get it checked out.
This is Capital Acquisition Tax applying to 2011.

Timbo1987

my Opinion below but get Professional advice
I think there will be CGT on disposal when they are 18. Difference in price in 11 Vs price now\then
Also there will be CAT for your kids but they will have Group B threshold
Your own CAT should have been sorted in 2011.

Trusts are a disaster Taxwise

Disposal into a trust is a taxable event
Disposal out of trust to recipient is another taxable event.

Lockedout2

Surely your solicitor advised on this at the time of death.

Did your mother leave the share directly to them i.e. it's held in a bare trust for them until they are 18 but they "own" the asset since their inheritance in 2011.

Or did she place the asset into a discretionary trust so that they don't own the asset until they receive it from the trustees.

I'd talk to the solicitor and get some advice on the implications of the children owning more of the house than you.

dogsears

Water John wrote: »

I think all three of you are now in the B schedule. You because you hadn't complete ownership. Threshold for each of you €32,500.

No. Wrong. OP is child of the deceased ie Group A. There are no provisions that move him/her into Group B with the lower threshold.

Mr. Incognito

Speak to a solicitor .

Property threads are banned

Water John

dogsears, I don't want to have negative news for the OP. The problem is the OP did not have total control of the property. the trust for the the 2 children, MAY, and I emphasise that have dragged the OP into Group B. That's from my reading of it.
Talk to a professional OP.

psnKOB79LFC

Water John wrote: »

dogsears, I don't want to have negative news for the OP. The problem is the OP did not have total control of the property. the trust for the the 2 children, MAY, and I emphasise that have dragged the OP into Group B. That's from my reading of it.
Talk to a professional OP.[/quote

News to me, where in cata does it say that?