CAT for parent on gifting property?

A

Ariell

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I'm sure there has been a thread on this question but i can't find a specific answer and any help would be appreciated.

My husband and I have our own house. We have been looking for to move for a while and my mother has suggested that we live with her. The property will need alot of work etc so she will sign the house over to me and we will renovate this and she will live with us. We would prefer to have it gifted than inherited as we will probably need to mortgage it to raise the funds to complete renovations.
The property was inherited by my dad from his dad, who in turn inherited this from his dad. The value would be around €200,000 and I have never received any other gift/inheritance.
I know I would need to pay stamp duty, but what are the tax implications for my mother? If there is a CAT implication for her how would it be calculated as she never "bought" this property?
 
You would pay no Capital Acquisitions Tax as the value of €200,000 is below your threshold.

There are no tax implications for your mother. As it was her home, it is exempt from Capital Gains Tax.

Do you have a mortgage on your own home. Is there equity in it? Why not sell it to fund the renovations?

If you have a tracker on it, you could port the tracker to buy your mother's house.

Some potential problems down the road - these happen in practice although you probably couldn't imagine them happening to you

You and your husband split up and he wants you to buy him out of the house. After all you own it jointly. OK, if it's signed over to you, it will improve your position. But as it is the family home, he might have a claim on it.

I know of one tragic case where the mother signed the family home over to the daughter and her husband. Everything went absolutely fine until the daughter died suddenly. Mother and son in law lived happily ever after... until son in law met a new woman and wanted to marry her. He had no choice but to put the mother out of the house.

So maybe remortgage your existing home to do the work, and leave your mother's home in her name.

Brendan
 
Thank you for the above information Brendan.
Our own house is currently in negative equity so we can't remortgage this.
I completely take your point about what could happen in the future!
 
Brendan Burgess said:
I know of one tragic case where the mother signed the family home over to the daughter and her husband. Everything went absolutely fine until the daughter died suddenly. Mother and son in law lived happily ever after... until son in law met a new woman and wanted to marry her. He had no choice but to put the mother out of the house.
Click to expand...

No choice, really?! None at all?? Seriously?

That problem was easily avoided by the mother signing over her interest subject to her retaining the right to reside in the house for her lifetime.
 
Hi Jon
I have heard of a Right to Residence so will investigate this further as it may be an option and provide her with some level of protection.
Thanks for the advice
 
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