Tax on parental gift towards mortgage?

[Florence]

My husband's elderly parent, whom we have looked after for a long time, has recently sold a house and wants to give us a large lump sum towards buying a new house. As we do not feel it is a good time to buy, we are looking into putting it into paying our current mortgage. This mortgage is in my name only. Does anyone know the tax implications as it stands? Can I accept a gift from a parent-in-law? If the gift is paid to my husband and he then pays it to me, does that change things? Or should we get his name on the mortgage? Or would we be better off inheriting the money when the time comes?

 

[Guest128]

You can accept a gift from anyone, how much tax you pay is based on their relationship to you:

Gift tax http://www.revenue.ie/en/tax/cat/leaflets/cat1.html

Inheritance tax: http://www.revenue.ie/en/personal/circumstances/bereavement/inheritance-tax.html

 

[Guest128]

..
http://www.revenue.ie/en/personal/circumstances/bereavement/inheritance-tax.html

 

[Florence]

Thanks Flanders. I wonder if the parent pays the mortgage directly, is that still a gift or can it come under the tax exemption for a dwelling house? Guess we will have to take some advice on this.

 

[Bronte]

Florence can you not wait until the inheritance, the limits for your husband are very large on this. Also does the parent have the means to see though medical and living costs till death. Any parent giving away money should have independant legal advice.

 

[MOB]

This mortgage is in my name only.

What about the house? Is it also in your name only?

 

[Florence]

Yes, the house is in my name only. The parent has taken legal advice and is set up so they will be looked after financially. Obviously things can still happen outside of our expectations and it will be our responsibility to deal with them.