Tax on Property ownership inherited after Probate

C

cd76

Guest
HI,

I have recently along with my 3 siblings inherited a quarter share in my parents house located in Dublin. The house was is on the probate documents at approx 700,000 Euros. As the probate was processed in the spring and given that the market has now slumped we cannot sell for anything near this value and would now like to rent the house out as we are in no hurry for the proceeds of the any sale.

My questions are:-

- If we rent out the house for say, 1 year or more, do we have to transfer the house into our four names and pay the stamp duty - which I believe would be 50% of the applicable rates - as we are inheriting from our parents ?

- Would we have to pay legal fees to effect the transfer to our 4 names ?

- Or, can we rent the house out in the entity of the "estate" and then sell in a years time and then divide up the proceeds.

- If we can rent out in terms of the "estate" who would the rental agreement be between with the new tenants ? and

- What would be the tax situation of the estate which would then be receiving income ?

- Is there a time limit on how long we have o dispose of the proprty to continue availing of our inheritance tax allowances.


any help is much appreciated.

CD
 
I and my 2 siblings also inherited our parents home some 3 years ago. I was the named executor on the will, so when i took out Grant of Probate , it was my responsibility to discharge the estate in line with the will. When it came to rhe house, initially we decided to sell, but there was a problem with an extension and it took a year to resolvethis planning issue. During this period we decided to rent the house. I set up a property rental account and accounted for all rental receipts and expenses. When we eventually sold the house , I prepared a rental account for taxation purposes and duly returned it 3 ways on our relevant tax reurns. Also had to account for CGT on disposal as the house had gone up substantially on the Probate valuation. Only used a solicitor when selling the house and the Grant of Probate was proof of ownership.

hope this helps somewhat.



Secman
 
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