Parent gifting house before death

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Mamamia22

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Say a parent gifts a house to their two children. House is valued at 390k at the time of transfer. Parent then dies some time later. House is subsequently sold for 400k. Is there any tax due other than stamp duty at the time the parent signed over the house ? There would obviously be solicitors fees on both transfers and auctioneer fees likely amounting to the rise in value.
 
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Principal private residence?
Other, previous parental gifts or inheritances to either child?
 
I would strongly recommend that you keep the property in your name until the inevitable. Once transferred you're at the whim of your children and their spouses.

No idea what happens in the event of a divorce where your home is now recorded as an asset on your kids balance sheet but would want to explore that for certain to ensure future you is not on daft looking for a rental/shared accommodation in the event everything goes Frank Spenser.
 
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Your point about spouses is a good one however I’m wondering if it’s best to sign over property well in advance of physical /mental decline rather than distribute large assets in a Will.
 
Mine was an observation - I'm not qualified to comment any further, pretty sure others better placed will assist though.
 
I'm just wondering, if you have a particular reason for considering this, or what benefit can you see.. e.g. is it to do with the Fair Deal.?..
 
Mamamia22 said:
Say a parent gifts a house to their two children. House is valued at 390k at the time of transfer. Parent then dies some time later. House is subsequently sold for 400k. Is there any tax due other than stamp duty at the time the parent signed over the house ? There would obviously be solicitors fees on both transfers and auctioneer fees likely amounting to the rise in value.
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On the assumption it's PPR with no issues on years living elsewhere or part dedicated to business use etc, then CGT doesn't factor here.

The beneficiaries would have to pay stamp duty if transferred now but no stamp duty applies on a death so there's a 1% savings by holding out.

CAT will apply in either case at the market value at that time and CAT thresholds also at that time. CAT thresholds are unlikely to go down and if it's two children then their €335k each will cover it now and then.

Like others have pointed out - it would be inadvisable to transfer the asset in advance of death if the current owner intends to continue living there. In addition to the issues mentioned above, there's also the day to day issues like who is responsible for repairs, insurance, LPT, TV license(!). What of future illness or need to avail of the fair deal scheme (which has a look back for a number of years for assets transferred such as this case)?

There's no reason I can see to transfer now to avoid 'distribut[ing] large assets in a Will'. This happens all the time and as above, there's the benefit of no stamp duty. The most important thing to do now before mental illness / decline is to make sure there's a properly executed will in place.
 
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