Pros & Cons of living parent transferring family home to children

T

The Pool Boy

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My elderly widowed mother is considering transferring the family home equally to all adult children and she would live in it until she dies. The house in question would be worth in the region of €200k-€250k. I suspect she has the the Fair Deal nursing home loan scheme rules in mind, but I could be assuming incorrectly. All siblings are married and have their own homes and wouldn't be looking to live in the house now or in the future - indeed it is her idea and not coming from us at all.

What are the pros and cons of such a move to both parties....?
 
Your mother is thinking ahead and fair play to her. If she goes into FD still owning the house, that could cost her(estate) an additional €55k over 3 years contribution. This can be deferred by way of the loan to be repaid on her death. If the transfer happens more than 5 years before she applies for FD, this can be avoided. However, if it is transferred to you and your siblings, valued at €250k and it goes up in value by the time it is eventually sold, you will be liable to CGT on the gain. It would have to go up by €165k in value to equate to the €55k. That seems unlikely in short to medium term, but who knows? My thinking would be to leave well enough alone as you can't know when or if she will need nursing home care but, inevitably, she will pass on and the house will be sold.
 
"If the transfer happens more than 5 years before she applies for FD, this can be avoided."

Yes, because the taxpayer can fund the lady's nursing home care.

On a purely mathematical basis the thinking probably works. But the beneficiaries will pay stamp duty and the costs of transferring the home.

If the house passes on death, there is no stamp duty.

mf
 
I have a relation with a life interest, no problem with getting SW or being fully paid up in a nursing home.
 
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