Parent gifting a house - implications

S

sparkletoes

Guest
Hi all,

I searched and I just can't find anyone in the exact same situation.

Here's my situation:
My mother wishes to gift me her "spare" house (she inherited it)
It is worth approx. 160,000 euro.
I am a first time buyer who is currently renting
My only other sibling is deceased

I'd like to know what tax implications are involved with this transaction. I am particularly eager not to cause her any expense in gifting me the house.
Secondly I will be married in six months time, my husband to be will be moving into the house with me. Can I then put his name on the deeds or will this cause further expense? If his name is not on the deeds, what will happen if i die? (god forbid)

My mother is extremely concerned that we are getting married, planning on children and do not have a house. She wants to sort this out asap. However, as we are all going to be a family anyway, and at the end of the day i'll inheriting the house, I'm not sure if this is the smartest way to do it. Would it be better if we just live there. I will never sell the house anyway because it's been in the family for years.
 
Hi MF1,

Thanks but again the situation is slightly different - I am not buying the house. So my mother will have to pay CGT on the amount that the house has increased since she inherited it? Even if it is being given to me as a gift and it she is not profiting from it?
 
there was another post about this elsewhere on the site recently. But yes CGT may still apply even though you arent paying for it.
 
Unless your mother is terminally ill (and I hope she is not and lives many happy years) it's NOT advisable for you to "just live" in her house. She may need nursing care later in life and may have to sell the house leaving you homeless, she may fall out with you (even if it seems unthinkable now) or the house may eventually appreciate in value while the CAT thresholds are very likely to be cut, which may lead to a large inheritance tax bill for you.

When did your mother inherit the house, what was it valued at then?

Why do you want to put your husband's name on the deeds, effectively gifting him half the house, is that what your mother wants? If you die then, he will inherit your house automatically, as jointly held property.
 
My mother bought it from a relative for my grandfather who lived there until he died and then my brother lived in the house (now deceased). So she would have bought it in the 1980's for about 13,000 pounds if I remember correctly (recall her giving out about the interest rate) so it's wasn't really inherited. It always remained in my mother's name rather than my grandfather's.

No she's very healthy with many more years ahead of her and when I raised the tax issue, she told me not to worry about it that she just wants to see me in a home. I'm concerned that she's beside herself worrying about us having a family and no house that she's not thinking logically.

I completely trust that she would not sell the house from under me, or that we would ever fall out like that. If she ever got ill she would have 100% faith in me looking after her. There is also a monetary inheritance (hers) of 300K that she plans to use if I won't take her in!

I wanted to gift him half the house as he will be putting money into it as it need cosmetic renovation. But it's not necessary I guess, as long as he wouldn't have to leave if something happened to me. My mother will not put any conditions over the gift of the house except a faithful promise never to sell it. It's important to the extended family that the house stays in the family....
 
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