Inheritance of a house

Grad18

So both myself and siblining are been gifted a house each. My siblings house will go to her child (one of them). Now my house will go to my children if I have any and if I don't will go to my siblings second child.

I just want to know the tax implications etc if I accept this and purchased my own home? and how thus asset would be treated as I cannot sell in terms of my financial wealth and accessing means tested Gov services etc

I am not sure I should accept the house when I have no control over it and I am just been used so my other sibling doesn't have to pay a lot more tax by having both in her name. I really only have my living there. The original deal was I would get the house and up to me what I do with it. I don't live near my family so not sure whats changed.

Edit nothing signed over yet

Claw Hammer

Grad18 wrote: »

So both myself and siblining are been gifted a house each. My siblings house will go to her child (one of them). Now my house will go to my children if I have any and if I don't will go to my siblings second child.

I just want to know the tax implications etc if I accept this and purchased my own home? and how thus asset would be treated as I cannot sell in terms of my financial wealth and accessing means tested Gov services etc

I am not sure I should accept the house when I have no control over it and I am just been used so my other sibling doesn't have to pay a lot more tax by having both in her name. I really only have my living there. The original deal was I would get the house and up to me what I do with it. I don't live near my family so not sure whats changed.

Edit nothing signed over yet

From a tax point of view, a lot depends on how this is being structured.
You don't say exactly what you are getting. Is it a life interest with a gift over? A right of residence in a house gifted to someone else? A determinable gift? A condition subsequent?

Grad18

Claw Hammer wrote: »

From a tax point of view, a lot depends on how this is being structured.
You don't say exactly what you are getting. Is it a life interest with a gift over? A right of residence in a house gifted to someone else? A determinable gift? A condition subsequent?

Not sure on this but solicitor is doing paper work and I will ask questions before I sign. Assume the transfer from parents prospective will be as tax efficent as possible.

I do know the house will go into my name and my parents have right to live in this house the family home until they pass. I guess I will transfer to my children or my siblings down the line.

Caranica

Grad18 wrote: »

Not sure on this but solicitor is doing paper work and I will ask questions before I sign. Assume the transfer from parents prospective will be as tax efficent as possible.

I do know the house will go into my name and my parents have right to live in this house the family home until they pass. I guess I will transfer to my children or my siblings down the line.

Then the issue is not an inheritance issue but a gift issue

Grad18

Caranica wrote: »

Then the issue is not an inheritance issue but a gift issue

I see and what sort of impact will it have on purchasing my own place etc

Caranica

Grad18 wrote: »

I see and what sort of impact will it have on purchasing my own place etc

You will still be treated as a first time buyer by banks but won't be eligible for help to buy or any such schemes from revenue

Claw Hammer

Grad18 wrote: »

Not sure on this but solicitor is doing paper work and I will ask questions before I sign. Assume the transfer from parents prospective will be as tax efficent as possible.

I do know the house will go into my name and my parents have right to live in this house the family home until they pass. I guess I will transfer to my children or my siblings down the line.

Why don't the parents just keep the house and leave it to you by will? why transfer it now and keep a right of residence?

qwerty13

Grad18 wrote: »

Not sure on this but solicitor is doing paper work and I will ask questions before I sign. Assume the transfer from parents prospective will be as tax efficent as possible.

I do know the house will go into my name and my parents have right to live in this house the family home until they pass. I guess I will transfer to my children or my siblings down the line.

I’m not a legal or financial person, so my questions are just coming from the angle of what if I was in your position.

I don’t understand it at all. So you will legally own the house, does that mean you have to pay a lump of tax now because your parents have signed it over to you? So if they can live in the house, does that means you can’t sell it, or rent it out, or even chose to live in it alone or with a partner?? And then when your parents pass (sorry), you still can’t sell it, because it has to be kept in the family and be Willed to your child or your sibling’s second child?? If that’s the case, will you really own this property, or is it a case of you being granted a right to live there for the duration of your life?

Am I being thick here, I don’t understand what advantage you’d gain out of this arrangement, unless you want to live with your parents (and I think you said that you live far away from them). And does signing a property over / gifting it mean an immediate tax bill for you? But yet you still have no control over the asset - or even who you might chose to leave it to (the stuff about your sibling’s second child).

It just doesn’t make any sense to me OP - at least not from your perspective. Or am I missing something?

I’d be getting independent legal advice, entirely separately from your parents and your sibling, and I would absolutely not sign anything until I’d done this.