Transfer of ownership of house to an adult child

C

Carnmore

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The mortgage on the home of a person has been redeemed by their adult child. The ownership is being transferred to an adult child on the proviso the parent remains in the house for life.

1) Is there a CAT liability for either parent or child from the transfer of ownership? (house value <€150k)

2) Is there a CAT liability for the parent having their mortgage redeemed?

Thank you in advance for any insight
 
The difference between the market value and the amount paid for the house is a gift subject to a reduction for the right of residence. If the child has not previously received a gift then there will be no CAT if it's less than €310,000.

The right is residence may give rise to a CAT liability.

Should get proper advice to reduce exposure. Potentially sell a share to the child for the value of the mortgage and then live in their own house. PPR will apply to child's share of property.
 
The child has their own home and has lived away for many years.

Would there be a CAT liability for either party?
 
Isn't there stamp duty here somewhere too? Can't remember the details but had a family scenario something similar few years back and advice we got was there would be tax for the parent and for the child, one was stamp duty and not sure what the other was.
 
Can the parent not sell the property to the "child" and retain a life interest in it.

In that way there is no gift from child to Adult and no gift from adult to child.

Maybe i have misunderstood.
 
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