The transaction is letting the son live in the property!Any transaction structured mainly or solely to avoid tax could be looked into and vetoed by Revenue. I know that much. Anyway I did qualify my comment.
Whatever about being a fishmonger there's definitely something fishy about being so confident that Revenue might not look in more detail at a case like this.
There's little difference in this country between a judicial separation and divorce.Separation and Divorce are not the same thing. If the divorce is to be contested it can get very dirty and few can predict what will happen in settlement.
The property will be owned by his parents.....how could his ex wife claim a share of this property?Is there even the slightest chance that his ex, might come back and try to get a share of this new property, through the court system?
What new assets will the son be acquiring?Having said that; it would not be prudent for this man to acquire new assets until the settlement terms of his JS or divorce are agreed.
We would still have about €200k in savings plus a small private pension and state pensions to see us through. We live frugally but enjoy our holidays.
I don't understand your question.What new assets will the son be acquiring?
The original poster mooted the possibility of the son taking possession/acquiring the house after marriage issues have been sorted out. Some posters are addressing the issue of the risks inherent in him acquiring the property before this happens which is irrelevant.I don't understand your question.
If you could tolerate it -
Let him move in with you
Initially our son did live with us (plenty of room) but it was not an ideal arrangement for him.
Just a thought, if the house is in your name it will be taken in to account should you go in to a nursing home + your own home.We have cash sitting in various NTMA bonds and certificates plus some monies sitting in Prize Bonds. Earning very little and winning nothing.
We were thinking of buying a second home for about €400k here in Dublin, if we can find one. It would be for our son who is separated from his wife to live in.
He would have difficulty getting a mortgage for himself at the moment and is paying serious money in rent for an apartment plus paying the mortgage on his original home where his ex now lives.
We may or may not charge him a rent to live in this house.
Is this a good idea. (to buy house).
Should we charge him a rent (not needed) and if we don't will he be charged some sort of benefit in kind tax?
Our savings would be dramatically reduced.....but we don't need a lot of money to live off. We are just turning 70 years old ourselves.
Does a person have to live in the house for 6 years after inheritance to avoid paying Inheritance Tax?Let him move in with you, try not to die for 3 years and tell him he has to live there for 6 years after he inherits the family home to take advantage of the Dwelling House Exemption.
Another point outside the financial ones is how will this affect your son moving forward with his life after divorce.
Let's say 2 years from now he meets someone new decides to move on, maybe even move out of house. Do you want to be a landlord?
Does having this house and the arrangement actually limit him looking at options to move his life forward?
What if he wants to change job, city, etc.
I know too many people who have put their lives on hold for an inheritance, only for the benefit to come long after their best years.
My vote is help him with the rent, then he can move on with his life.
I hope your other children understand that sometimes in life we don't need to be treated equally to be treated fairly.
Absolutely not. We would sell the house immediately. We don't want to own a second property. We even dismissed the idea of buying a second home in the sun.Let's say 2 years from now he meets someone new decides to move on, maybe even move out of house. Do you want to be a landlord?
He needs to live in a house with a garden. He has children. The house his ex is living in now has a beautiful garden put in place by him.My vote is help him with the rent, then he can move on with his life.
Our plan was to loan him €100k that he would repay to us over whatever amount of time and an amount that would suit him.
I can't dispute any of Herr Burgess' post. It appears workable and family "friendly."This is clearly the best plan. Lend him what he needs to buy a house.
Make sure that there is a proper legally binding mortgage on the property so that no one else can claim it.
- That is an easy transaction to set up
- It is an easy transaction to unwind - he just repays you the money
- in monthly instalments
- by "switching" to another lender
- if he sells the property
- out of his inheritance
- You are not a landlord with all the headaches and compliance that involves
- The tax consequences are favourable - any increase in value accrues to him free of CGT
- It's easy to adjust your will to account for it - his debt to you is part of the estate
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