Can I legally adopt my adult nephew

d7guy

I wish to leave my house to my adult nephew (33) in my will. Trying to minimise his future tax liability( inheritance tax) I wonder if I could legally adopt him ( I have no children of my own).
How difficult would this be.

Cakerbaker

You can only adopt a child, someone under 18 years old.

HBC08

You could marry him.

Cakerbaker

HBC08 wrote: »

You could marry him.

I know friends have done this but I don’t think you can marry your nephew

HBC08

Cakerbaker wrote: »

I know friends have done this but I don’t think you can marry your nephew

I don't know for sure.
I mean I'm pretty sure you can marry your cousin.

Dr Turk Turkelton

HBC08 wrote: »

I don't know for sure.
I mean I'm pretty sure you can marry your cousin.

I'm no legal expert but I believe thay law only exists in Carlow and Tipperary.

Pawwed Rig

d7guy wrote: »

I wish to leave my house to my adult nephew (33) in my will. Trying to minimise his future tax liability( inheritance tax) I wonder if I could legally adopt him ( I have no children of my own).
How difficult would this be.

I doubt adopting him would work but depending on your age and how long you live there are definitely steps you could take to reduce his future liability significantly. Eliminating them might be difficult but not impossible.
It would entirely depend on both of your personal circumstances.

28064212

You can't: https://aai.gov.ie/en/faqs.html

My foster child / step child is over 18 years of age. Can I adopt them?
No. An adoption can only be effected in Ireland if the child is under the age of 18 years at the date the Adoption Order is made. There is no provision in current legislation to adopt anyone over the age of 18 years

893bet

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-reliefs/favourite-nephew-or-niece-relief/index.aspx

Favourite nephew relief? Usually it’s for a farm or similar. Worth getting advice and seeing what hoops need to be jumped through to qualify.

minikin

A possible route (n.b. I am not a tax advisor)
Charge them rent for a room. (You’re allowed to earn up to €14,000 per annum tax free) Leave them in situ after your death, (paying rent to nobody) after six or twelve years (depending on circumstances) they can claim adverse possession.

https://www.prai.ie/adverse-possession-registered-land-section-49/

“Under Section 13(2) of the Statute of Limitations a person in adverse possession acquires title after 12 years. In the case of a claim to the estate of a deceased person, under a Will or intestacy, Section 126 of the Succession Act provides that such claim is statute barred after 6 years. However, a personal representative of a deceased owner, steps into the place of that deceased owner and has 12 years to recover the property from any person in adverse possession, under Section 13(2) of the Statute of Limitations.“

Car99

minikin wrote: »

A possible route (n.b. I am not a tax advisor)
Charge them rent for a room. (You’re allowed you to 14,000 per annum tax free) Leave them in situ after your death, (paying rent to nobody) after six or twelve years (depending on circumstances) they can claim adverse possession.

https://www.prai.ie/adverse-possession-registered-land-section-49/

“Under Section 13(2) of the Statute of Limitations a person in adverse possession acquires title after 12 years. In the case of a claim to the estate of a deceased person, under a Will or intestacy, Section 126 of the Succession Act provides that such claim is statute barred after 6 years. However, a personal representative of a deceased owner, steps into the place of that deceased owner and has 12 years to recover the property from any person in adverse possession, under Section 13(2) of the Statute of Limitations.“

And what if the deceased's next of kin lays claim to the building within the 12 years?

minikin

Car99 wrote: »

And what if the deceased next of kin lays claim to the building within the 12 years?

Doesn’t sound like that applies, otherwise the initial query from the op (adopting a nephew to give them a house) wouldn’t be tolerated by other next of kin.

y0ssar1an22

Favourite Nephew or Niece Relief


only applies to business assets so thats outta the question.



could you gift them 3k of the value of the house each year, increasing his % ownership over a number of years? its small, but it might help.

y0ssar1an22

there is a CAT life assurance policy you can do, that will pay the CAT due. think you would need a lawyer, actuary and accountant to get that going. prob a high level tax advisor would be my 1st step

Car99

minikin wrote: »

Doesn’t sound like that applies, otherwise the initial query from the op (adopting a nephew to give them a house) wouldn’t be tolerated by other next of kin.

Tolerated by the next of kin ? . The aunt/uncle of the nephew being of sound mind does not have to consult anybody when writing a will which they want to do but do want to avoid a large tax burden on the nephew.

Dunne1995

Dwelling house relief is your best bet OP.
Your nephew will have to move in at least 3 years prior to your death and live there for 6 years thereafter and will inherit your home tax free.

If he sells or moves out before 6 years have expired revenue clawback will apply and he will owe CAT to revenue.

It is important to note your nephew also cannot own another home already.

See this link;
https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/exemption-for-dwelling-house/index.aspx

minikin

Car99 wrote: »

Tolerated by the next of kin ? . The aunt/uncle of the nephew being of sound mind does not have to consult anybody when writing a will which they want to do but do want to avoid a large tax burden on the nephew.

Look, they’re trying to come up with a creative solution to a problem, I don’t know the full circumstances... just offering a completely unqualified possible solution... Thinking aloud... No need for the cross examination, when you don’t know the situation either.

y0ssar1an22

Dunne1995 wrote: »

Dwelling house relief is your best bet OP.
Your nephew will have to move in at least 3 years prior to your death and live there for 6 years thereafter and will inherit your home tax free.

If he sells or moves out before 6 years have expired revenue clawback will apply and he will owe CAT to revenue.

It is important to note your nephew also cannot own another home already.

See this link;
https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/exemption-for-dwelling-house/index.aspx

You lived in the house as your main home for the three years before the person’s death.

thats the problem with the 'new' DHE for inheritances , but it may work