Case study Mother giving me house?

I

irishss

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Hi everyone,

The house I'm currently living in with my wife and 2 sons is owned by my mother, no rent being paid.

She wants to give me the house .My problem is I owe a certain mortgage company a negative shortfall on a house I had repossessed several years ago. My wife is on the shortfall also.

My mother wants the house out of her name as she's moving abroad.

My sons are 15 and 10.

I'm afraid if I take ownership the house it would be taken from the bank that the shortfall is owed.

Any advice would be appreciated.
 
Can she not totally trust you to pay everything, maintain everything, etc, in so far as concerns the house, then leave it in her will in such a way that she won't ever have to worry about it again?
 
Can she will it to your two sons but also give you both a lifetime right to live there?
 
Yes willing it to sons would be a option, but would the tax implications be higher..

Thanks
 
The debt owed to the bank will expire in time. If they get a judgement against you and they fail to get it satisfied it will expire after 6 years. You would need to confirm this for yourself. As you live in the house you will be able to claim exemption but even as you are the son your inheritance allowance is €280000 at the moment
 
There is a way to bypass you guys and get the property to your kids tax free, but with protection for yourselves, and no comeback for your creditors.

Get professional advice.
 
You have a number of options, ranging from going bankrupt (meaning that you could accept any gift after you get discharged after 12 months without creditors being able to lay claim on it) to doing a Debt Settlement Arrangement under which the bank is likely to accept a modest amount (financed by your mother) in full and final settlement. Indeed, if the bank is your only creditor, you would probably not have to incur the cost of a DSA and just have someone negotiate directly with the bank and do an informal settlement.

Jim Stafford
 
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