Structuring an inheritance for grandmother

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Kfox92

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My grandmother wants to leave her house (value c 400k) to her granddaughter(my sister) and her other assets (800k in land and some cash) to her 5 children. She would also like to look after her 7 grandchildren and 3 great grandchildren. My sister doesnt have savings or the borrowing potential to pay the inheritance tax of over 100k((400k-33k)/3). Would it be a possible workaround to gift the house 20% each to the children with the condition that my sister can live there paying rent with the possibility to buy the others out in the future. If a sale ever happens for the property the children would get the proceeds. This still leaves the children with 250k allowance of the 330k. With my grandmothers assets, this would mean that their thresholds never gets hit. I assume she would like to split the 800k to children,grandchildren and great grandchildren in a way that means that no inheritance tax would be due at all.

Is this viable? Is there any way we can ensure that the property would only get sold if all agreed, etc.? I've heard that there are issues when 2 or more people own a share of a property so would this be a bit of a red-flag?

The only other alternative thats been mentioned by another family member is that the most well off child inherits it, pays the tax and lets my sister live there. But this would seem slightly precarious as my sister could be asked to move and the proceeds of the sale would only go to that one child.

My suggestion seems fair but I might be missing some things.
 
NoRegretsCoyote said:
Could she get a mortgage for the €100k?
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Shes on a trainee wage of less than 23k and no savings so it don't think its a runner unless they allow exemptions for low LTV. She should be on higher wages in a few years but im not sure what amount. Also I wrote 100k, but its probably closer to 125k tax bill
 
Keep it simple.

Don't be looking at complex joint ownerships with a right to live there for life. You will pay more in tax advice and legal fees when you end up in court disputing it.

Leave the house to your sister in full.

The others in the family can lend her the money to pay the CAT.

She presumably can rent a room and repay the loan.

Or, if she can't afford, to live in a house, she can sell it and trade down.

Brendan
 
Kfox92 said:
Shes on a trainee wage of less than 23k and no savings so it don't think its a runner unless they allow exemptions for low LTV. She should be on higher wages in a few years but im not sure what amount.
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By the time this comes around she might have a big enough wage, or have a partner, or might be able to find a loan from someone else in the family to get her over the line.

Residency arrangements are the road the legal battles and families never speaking to each other again.
 
Couldn't your sister sell the house, pay her tax bill and buy a cheaper house when the time comes? There's no sense leaving her such a valuable asset and expecting her to afford to maintain it. I don't see that it would be fair on other family members to help fund her tax bill. If she doesn't earn much it would take a long time to pay them back. Your grandmother could state in her will that all assets be sold and then she can divide her estate by percentage per child/grandchild. At least that way everyone will get a cash inheritance and be able to pay any tax due on it.
 
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