Inheriting House and Farm Questions

[johnmurf83]

I will be inheriting a house and farm from my parents shortly, although they will continue to live in the house for the rest of their lives. Are there any complications this could cause if buying a house myself in future? I presume there isn't really as much of a incentive anymore for being a first time buyer regarding stamp duty etc as everyone pays at the same amount but are there others things that I should be aware of in relation to complications regarding when I buy a house myself as a result of having inherited the other house?

 

[Brendan Burgess]

I presume that they are giving a gift of it to you now?

What are the advantages of doing it now? Unless you are working the farm, I am not sure that there are any.

There are considerable disadvantages - each may seem remote to you, but these disputes to arise.

• You might fall out with them and they regret having given it to you
• You separate from your wife and she claims half your wealth
• You die and your wife inherits it and kicks your parents out
• There is little advantage if any in being a first-time buyer now, but there may be in time.
• You may become subject to CGT on any increase in value of a property which is not your own home.
• You may be subject to CAT on the gift now

What might the advantages be?

• If you are going to work the farm, you will have the security of owning it. If they don't give it to you now, they could change their will and leave it to the Dogs and Cats Home.
• There is probably some tax advantage in getting the farm now.
• Your father might qualify for the "early retirement" farm pension, if that is still going.
• CAT could rise in the coming years