Joint Tenancy with Aunt and Inheritance

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admc2017

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My aunt recently went in to a nursing home due to dementia and its fallen to me as her only nephew (and power of attorney) to make her house and paper work secure. Among her files was the deeds to her cottage, on which I am named as Joint owner -news to me! The house was bought about 20 yrs ago when I was 10. How is this going to pan out with inheritance tax when the time comes, I've never lived in the house fulltime except to care for my aunt when she was sick. Im sure she has a will but dont know contents
 
When she put it in your joint names, that was a gift of half the value to you. If you are registered as joint tenants, you will automatically inherit her half share when she dies, regardless of what is in her will. If as tenants in common, then it will depend on her will or next of kin if she dies without a will. If she relies on the fair deals scheme for nursing home care her half share of the house may be charged in favour of the hse, and you will have a year after she dies to pay it off. As a nephew, you are only entitled to a group B threshold,so currently 32500 from an aunt without paying CAT, but of course the prior gift will be taken into account and will reduce that threshold. Favourite nephew relief really only applies to a business/farm.
 
admc2017 said:
Thanks for that Vanilla, house will have to be sold so to pay the HSE and the Taxman.
Click to expand...

Maybe not.

The max amount that is due on a home is 22.5 %. Thats on her half so 11.25% of the value of the house.

The first €36,000 of assets is disregarded so if she has no other assets there will only be a Fairdeal bill on 11.25% of the value of the cottage over €320,000.

As for the tax due on your inheritance, well the tax is due not on half the property value but on the total value of what you inherit. That might be very little, who is going to buy a half share of a house ?

You need proper advice, it is possible that the total amount due for tax and fair deal may be quite low.
 
Is dwellinghouse relief a possibility? Can you move in/do you have an interest in any other property

Cremeegg, what is the reference to value over 320,000?
 
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