# Grandparents buying house for grandchildren



## productive (10 Jan 2012)

Grand parents looking to buy a property for two grandchildren without a mortgage costing 60K. 
There will be no mortgage on the property. 
The two grandchildren are under the age of 10.
Is it possible for the grandparents to pay for the property but the children own it. 
Can the childrens names only be listed on the deeds.
The desire is not to involve the parents as they have their own property and bank headaches. 
The purpose if doing this is to guarantee the family a home should the banks repoess their current home.
Alternatively, if this is not possible, can the grandparents and the grandchildren be listed on the deeds.
What would be the situation on death of the grandparents.
The property will require a major renovation so it expected that over 100K will be spent on the property, which will come from grandparents, parents and other family members.
The plan would be to rent the property until/if the current family home is repoessedsed. 
What are the consequences if the family remain in their current family home and the property is rented for the next 8 years. Can the children recieve the income into an education trust.
Thanks in advance for any responses!


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## ClubMan (11 Jan 2012)

I didn't think that a minor could own property?


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## productive (11 Jan 2012)

I have also heard similar but there must be a way. Surely the grand parents could sign a contract to purcase but it is up to them what is registered on thew deeds. 

I have asso heard of trusts but this seems an expensive route for a likely one-off event. 

Any legal knowledge would be appreciated.


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## CB 01 (11 Jan 2012)

Grandparents are essentially giving a gift of property to each of the grandchildren.  Such a gift would be assessable to CAT  (capital acquisitions tax)  There is an exemption for a child to take a gift from another related party and the current exemption is up to a value of €33208.  After that tax is payable at 30%.  

However as both the cildren are minors they cannot own the property in their own name.  A trust would have to be set up.  I think the better approach would be for grandparents to buy the property in their own name, they still have full control over the property, can take rents if necessary and apply them as they need.  The property could then be left by way of will to the grandchilren in due course.  It also gives grandparents full control over the property shoudl any further difficulties arise.


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## Brendan Burgess (11 Jan 2012)

> The desire is not to involve the parents as they have their own property and bank headaches.



If the grandparents are prepared to spend €160k, they may well be able to use it to solve the parents' headaches and to keep them in the family home. 

For example, if there is massive negative equity and arrears and a tracker mortgage, it's possible that the bank might accept €160k in full and final settlement and write off the balance. 

Your grandparents should keep their powder dry. 

Brendan


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## productive (12 Jan 2012)

Unfortunately, parents will not accept a handout. This is the next best  thing. Can the property be owned by the four individuals, 2 grandparents  and 2 grandchildren? 

Can anybody explain how a trust works and what are the costs, pros & Cons of a trust in this case?


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