Grandfather trying to leave site to grand daughter

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willbee

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Hi. My father in law is sorting out his will at the moment and he wants to leave a site for our daughter who is only 2 and half years of age a site from his land. Is there any gift tax payable or can she be allowed to accept this only when she reaches a certain age. My wife and I were advised to get planning permission it first and then get it signed over to us but in that area you need a housing need and we don't have a housing need. Any advice appreciated on the best way forward from here
 
The threshold GF to Grandchild is 49K,so if the site is valued higher than this there is CAT at 20%,whereas your threshold with your father is 496k

If you take it you can always gift it to your daughter when she is grown up and avail of the higher parent/child threshold
I don't see any advantage of the site being left directly to your daughter
 
capall said:
The threshold GF to Grandchild is 49K,so if the site is valued higher than this there is CAT at 20%,whereas your threshold with your father is 496k
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In the OP the disponeer is father-in-law. Threshold to daughter is €496,824 but to son-in-law is only €24,841. Be careful how you do this if transferring to yourselves first. Tax advice would be advisable.
 
This would not happen for a straightforward inheritance but would the grand daughter lose her future first time buyer status if receiving the land as a gift?
 
A site is not a residence and does not impact on the first time buyer status.
 
Neither is an investment property such as a block of offices a residence yet its been said before that purchasing one disqualifies one from FTB. So can someone purchase land and still qualify for FTB ? Whats the revenues' definition of 'residence' ?
 
If you get planning permission before transfer to the GD it will raise the value of the property and thus the inheritance tax, plus will have long expired by the time the Grandchild is interesting building a house or selling on.

It does not affect the first time buyer status.
Edit: Inheriting is not buying!

You need to crunch the numbers, I would lean towards giving the land directly to the Grandchild. CGT at 20% (for excess of €49,682) is quite low at the moment and I could only see the (%) going up when times get hard. Also hopefully, the properity crash will have long passed by the time she does inherit the land, which will reduce its value and thus tax, if any. Unless my memory is failing me, another point to remember is the 'Thresholds' are eaten into by previous inheritances. So inheritance €50k from Granddad will reduce the Son/Daughter Threshold by the same. This is the form from Revenue for calculating Inheritance Tax: [broken link removed]


[broken link removed]

Towger.
 
Towger said:
It does not affect the first time buyer status.
Edit: Inheriting is not buying!
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Yes but gift tax or gifting has been mentioned as an option and I'd suggest being careful with this option.
 
sign said:
Neither is an investment property such as a block of offices a residence yet its been said before that purchasing one disqualifies one from FTB. So can someone purchase land and still qualify for FTB ? Whats the revenues' definition of 'residence' ?
Click to expand...

Sign, commercial property does not disqualify one from being a FTB.

In order to be a FTB you must not have owned a dwellinghouse or apartment in Ireland or abroad before.

A site is, quite clearly, not a house or apartment.
 
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Two year old can't own property. It could be left in trust for her though it couldn't be then dealt with until she reachs the age of 18 which might be awkward.
 
There is no capital gains tax on inheritance,but if the land is gifted to either child or grandchild then there will be CGT to be paid by the grandfather
 
Would it be possible to have the site signed over to my wife to hold for our daughter until she is 18 without looking for planning permission.
 
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