I want to give my daughter €100k to buy out her husband in a separation agreement for the family home

D

drums

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What is the best way to do it. Is CAT involved. Can I give her a loan. I think she can get a bigger mortgage but I would prefer to buy him out.
 
You can give lifetime gifts up to about 350k ish to a child without her incurring CAT.

It's up to you whether you wish to gift her the money or lend it to her. There are no tax consequences.

Brendan
 
Also she would be giving it directly to her husband. Would he be liable to CAT?
 
If it is a loan, you can do what you like with it - formal or not.

Any money she gives her husband is not subject to CAT.

As it's not subject to CAT , she or you don't have to explain it to anyone.

Brendan
 
thank you Brendan and Pinoy Adventure.
So I just write a cheque and give it to him.
 
If he writes a cheque and gives it to his daughter is the husband not entitled to half? Or is there a separation agreement already in place?

Has the daughter consulted her solicitor about the best way to do this?
 
Just giving the money creates a real risk that husband will get a financial benefit from the parent in law, though not necessarily half.
 
Give the money to your daughter's Solicitor.

There are legal steps that must be followed in the property transfer, just handing over a chq is leaving you and your daughter a hostage to fortune.
 
Thirsty said:
Give the money to your daughter's Solicitor.

There are legal steps that must be followed in the property transfer, just handing over a chq is leaving you and your daughter a hostage to fortune.
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+1

Money must be seen to have been given to the daughter first and then to the husband, in order to avoid gift tax. Solicitor needs to be involved in the property transaction anyway.
 
Surely the loan route makes most sense.

Ms X is worth zero today.

I lend €100k to Ms X.

Ms X is still worth zero; she has €100k in cash and owes me €100k.

Gifting the money would seem fraught with danger.

But the key takeaway is that legal advice is required; matters as serious as this cannot be resolved with advice from a few fellas down in the pub which is what I or anyone else could be for all you know.
 
Loan it to her first. Then when what seems to be a separation is completed, gift the outstanding balance to her.
 
I presume that this is all part of a separation agreement?

Even still, separation agreements can be revisited.

So giving an interest-free loan would seem to be the best approach.

Brendan
 
Hi Thirsty

I think that the point is that whenever they do a statement of assets, that she will be shown as having a loan of €100k outstanding.

Brendan
 
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