Grandson to inherit house - implications of living in it in the meantime

[Bronte]

Literally no idea how I've managed to ever become a landlord, hold down a job, live in a different city in my twenties and end up in later life managing property from abroad in two different cities without ever having an agent. One of my young adult children is planning to move to Ireland to renovate a property for me. Has zero experience. I told them all I want is not to be bothered about it. Because I want them to make the decisions and learn by making their own mistakes. They won't have to paint like I did, or haul rock like I did, but they will be expected to use a mallot and load a skip. And if they do it well and get a taste for it, it might be the beginning of a career as they are showing scant interest in the one they got educated in.

Maybe my faith in the young of today is misplaced. I once had to lie to Ulster bank to get a mortgage, they got wind that the property I was buying might be a bit off from their valuation guy. Bank rang me up to ask if I'd done an engineers report, I had but there was no way I was giving them sight of that - it was the worst one I'd ever read. So I ran them a tale about how my brother in the business and my sister's boyfriend has assessed the property and it was grand. We were all fairly young then, in our twenties. But we had nerve and gumption. That particular property I sold for a massive profit, six figures, to a well known builder and he went bust.

 

[T McGibney]

Literally no idea how I've managed to ever become a landlord, hold down a job, live in a different city in my twenties and end up in later life managing property from abroad in two different cities without ever having an agent.

That was eminently possible decades ago. Now much less so.

 

[DannyBoyD]

My mistake, sorry - I thought Grandson wanted to move into property. Hence caretaker suggestion.

I wouldn't do a caretaker agreement outside that.

 

[Brendan Burgess]

He is in college and would love to rent it, as he is in college in another city and needs to pay for his accommodation.

Can you clarify what exactly you mean.

1) He moves into the house now and rents it from his Granny (which is what some people are answering)

or

2) He stays where he is but lets the house to a tenant and collects rent from the tenant. (Which is what others are answering)

Brendan

 

[Azurerat]

He just rents it out himself and tells Granny he is taking care of everything. As long as she is happy with this of course.

Thk u, but he needs some legal basis to rent? Access utilities etc etc?

My mistake, sorry - I thought Grandson wanted to move into property. Hence caretaker suggestion.

I wouldn't do a caretaker agreement outside that.

No bother, thks for ideas anyway......, he is a mature student 24 and studying in Cork and the property is in Dublin.
The reality is, I may be doing the donkey work on his behalf, though he does have a keen interest in business. I just need a legal mechanism to enable him it manage/rent it, with as little trouble to Granny

Can you clarify what exactly you mean.

1) He moves into the house now and rents it from his Granny (which is what some people are answering)

or

2) He stays where he is but lets the house to a tenant and collects rent from the tenant. (Which is what others are answering)

Brendan

Hi, my son has just been told he is being left a house in a will by his granny, who is now in a nursing home. She is giving him the keys and says he can have the house now as she will no longer be living in it. He is in college and would love to rent it, as he is in college in another city and needs to pay for his accommodation.


any tips/advice please

Just to clarify........see above for the original post.....
So basically...his Granny has written a will and is leaving him her house in the will,
Legally now the house is still his grannys
Legally now he has no rights re the house, re utilities etc
She is in a nursing home/Fair Deal and is not returning to the house
She however is giving him the keys now, and says the house is his to do whatever he wants with it.
The house is in Dublin
He is studying in Cork

As he cannot live in the house, (he is in Cork) the best solution would appear to be, to rent it out.
but he has no legal basis to do this, although he has the keys.....


A solicitor has just told me the simplest would be for him to lease from his granny and then sublease
Chatgpt has told me u can set up a "peppercorn lease" ie one in which he pays his granny nothing (means she wont have to pay tax/gift tax etc)
but he will have to register with RTB etc and declare taxes on income)

I am looking for a legal mechanism to enable him to rent/manage the house (probably via a rental agency), with minium disturbance to his granny

Thk u in advance for all idea/thoughts

 

[DannyBoyD]

Have Gran appoint an agency & pay rent to her account. Get accountant to do tax returns for Gran.

Gran can gift 3k per year to grandson.

Anything else seems too complicated; and without wishing to upset, its a set up that isn't going to last more than a couple of years.

 

[misemoi]

Will the house not have to be sold to pay fair deal loans? Or can that be covered by other cash from the eventual estate? Otherwise the will is offering an asset that will no longer be 100% owned by the Granny?

And in any case, given the category for inheritance, won't whatever the inheritance is involve a large chunk of inheritance tax for the grandson? Would it be worth seeing if the residue of the house proceeds can be given to a child of the Granny and then eventually it can move to the child of the child of the Granny as a gift?

And won't the rental income belong to the Granny, not the grandson? Of course she can gift it to him but beware of exceeding the 3k threshold or eating into the inheritance threshold which is low enough.