Inherited house; with exclusive rights

C

Crescenter

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Hi all,

A family member has inherited a house, however another family member has been given exclusive right to use it for their lifetime.

What tax implications does this have - full CGT liability even though it cannot be sold and technically they have no rights to it? Also there is money available for house maintenance etc, and as it is specified as being for the maintenance and upkeep of the house and not willed to anyone specifically is this liable for CGT?

Thanks.
 
In effect, two people benefit from the house. Suppose it is worth €100k. Revenue have a formula for calculating the value of a life interest. If the life interest is worth, say, €30k. then the interest of the other beneficiary is worth €70k.

Whether or not CAT needs to be paid depends on the threshold applicable to each beneficiary.

A maintenance fund reserved for the house must be reckoned as part of the package. The two parties with an interest in the house benefit from it. They cannot maintain a pretence that it somehow vanishes into a tax-exempt limbo.
 
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