Moving in with MIL and eventual buy out

M

Mgt

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Hey there,

I've done a few searches but cannot find an exact similar situation and am hoping for some advise across quite a few things. I hope I'm posting in the right area.

We have an opportunity to move into my husband's mothers house and share / care for her. It has been my husband's hope to live/buy in this house.

MIL owns house outright, no mortgage, it is her intention to will the house to to my husband and his sister (only sibling). Sister has no intention of living in the house and would need to be bought out.

More recently MIL has offered us the opportunity to move in with our family (3 kids), its a large house which could accommodate all of us but needs significant work which we would undertake. We are renting now having sold our house in 2010. MIL is in good mental health, still quite young but is very immobile and does not take of herself and only lives in one room in the house. This would be a long term commitment to live/mind her with a view to us eventually buying/inheriting the home.


Questions, what would our tax/CAT/CGT/Stamp duty exposure be on the eventual inheritance of the house based on us being resident there.

We need to borrow circa 120k to spend on the house, can we get a mortgage for this when we do not own the house?

How do we treat the sister's share? Do we settle it now in advance and how will that be treated for tax? Or do we buy her out later following inheritance.

Are there any advantages to transfer of ownership at this stage.

How do we protect ourselves if it doesn't work out and we've spent on the house and will be paying for the improvements.

Thanks in advance
 
Not a lawyer etc., but to avoid hideous family rows in the future I would suggest that your best course of action is to buy the house. Your mother -in- law can do as she wishes with the proceeds.

You can of course continue to care for your relative.
 
Mgt said:
MIL is in good mental health, still quite young but is very immobile and does not take of herself and only lives in one room in the house. This would be a long term commitment to live/mind her with a view to us eventually buying/inheriting the home.
Click to expand...

In light of her immobility and not taking care of herself you may need to take the Fair Deal Nursing Home Scheme into your considerations also. Even if she is young, looking after a family with 3 children can be a full time job in itself.

The disposal of property is borne in mind with the HSE for 5 years after the sale of the property so in other words if she were to need nursing home care after you purchased she may have to pay the full fee herself which can be heavy:

'Income and assets:

Income includes any earnings, pension income, social welfare benefits/ allowances, rental income, income from holding an office or directorship, income from fees, commissions, dividends or interest, or any income which you have deprived yourself of in the 5 years leading up to your application. Broadly speaking, an asset is any material property or wealth, including property or wealth outside of the State. If you are a member of a couple, the assessment will be based on half of the couple's combined income and assets. For example, if a couple'sincome was €600 per week, the assessment of the person needing care would be based on 50% of €600, or €300. In other words, the person needing care would be considered to have a total income of €300 per week. A couple is defined as (a) a married couple who are living together or (b) a heterosexual or same sex couple who are cohabiting as life partners for at least three years. The assessment will not take into account the income of other relatives such as your children.'
 
Thirsty said:
Not a lawyer etc., but to avoid hideous family rows in the future I would suggest that your best course of action is to buy the house. Your mother -in- law can do as she wishes with the proceeds.

You can of course continue to care for your relative.
Click to expand...
To add to what SE has said, the MIL's current benefits and possible state pension could be impacted is she sells the house so selling the house would be the last thing I would consider now.

Re dropping 120k into it, whats the current value?
No you cant borrow against an asset you don't own.
The bank may consider equity release for the MIL, depending on the numbers.

I would forget about the sisters share or your share right now, preserve the asset to look after your MIL and plan on buying out the sisters share.

Read and get to grips with the material in the link SE gave on the FDNHS, getting it wrong can be expensive.
This is another link on it
[broken link removed]
 
Hi Mgt,
Did you progress any further with this? In a similar situation and starting to explore options.
thx

Mgt said:
Hey there,

I've done a few searches but cannot find an exact similar situation and am hoping for some advise across quite a few things. I hope I'm posting in the right area.

We have an opportunity to move into my husband's mothers house and share / care for her. It has been my husband's hope to live/buy in this house.

MIL owns house outright, no mortgage, it is her intention to will the house to to my husband and his sister (only sibling). Sister has no intention of living in the house and would need to be bought out.

More recently MIL has offered us the opportunity to move in with our family (3 kids), its a large house which could accommodate all of us but needs significant work which we would undertake. We are renting now having sold our house in 2010. MIL is in good mental health, still quite young but is very immobile and does not take of herself and only lives in one room in the house. This would be a long term commitment to live/mind her with a view to us eventually buying/inheriting the home.


Questions, what would our tax/CAT/CGT/Stamp duty exposure be on the eventual inheritance of the house based on us being resident there.

We need to borrow circa 120k to spend on the house, can we get a mortgage for this when we do not own the house?

How do we treat the sister's share? Do we settle it now in advance and how will that be treated for tax? Or do we buy her out later following inheritance.

Are there any advantages to transfer of ownership at this stage.

How do we protect ourselves if it doesn't work out and we've spent on the house and will be paying for the improvements.

Thanks in advance
Click to expand...
 
Hi kaiser

I think you should start a new thread. All circumstances are different. And you might get advice more appropriate to your particular circumstances.

Brendan
 
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