Hi all I have two questions 1)Is it possible for a mother to transfer her house over to the kids and still live in the house? Is there any tax implications.
2)If the mother sells the house to the kids, do the kids have to pay stamp duty? Cheers !RAY
1. Yes, the parent can transfer the property to her children with a "right of residence" reserved in the property for herself for her lifetime. There are no tax implications in doing this. There should also be no Gift Tax payable as each child is entitled to a tax free threshold of about €550,000. This is a lifetime figure, so unless the children have used up some or all of that already, there should be no tax due.
2. Re stamp duty, if any of the children are first time buyers they will be exempt from Stamp Duty. If any are not first time buyers they will pay at half the normal rate under the close relative relief (consanguinity)
Thanks 4th estate for your reply
one last question. If there is still a loan on the house does this have to be payed off before the house can be tranfreed to the kids.
Cheers
!RAY
Unless the parent wants to transfer the house to the kids debt free, then I see no reason why the parent cannot sell the property to the kids at less than market value i.e at the price of the outstanding mortgage and then pay it off herself! The kids would still be eligible for Stamp duty exemption or relief.
In other words the gift of the property would be subject to a right of residence and in consideration of the amount of the outstanding debt.
If the parent wants to gift the property debt free, then yes, I suppose the debt would have to be cleared beforehand.
These are only my thoughts, and you should get proper legal advice from a solicitor about this. You can of course point out the theories given here for discussion!!
Please let the forum know how you get on, you could be helping others in a similar situation!
4th estate
Is it possable for the parent to sell the house TO THE KIDS at less then market value.E.G House value 500,000 euro and sold to kids for 100,000 euro.Dont think the revenu would be happy getting stamp duty on 100,000 instead of 500,000.None of the kids are a first time buyer
Cheers
!RAY
4th estate
Is it possable for the parent to sell the house TO THE KIDS at less then market value.E.G House value 500,000 euro and sold to kids for 100,000 euro.Dont think the revenu would be happy getting stamp duty on 100,000 instead of 500,000.None of the kids are a first time buyer
Cheers
!RAY
The parents can sell their house to anyone they like for whatever amount of money they wish.
But the purchaser will still pay stamp duty on the market value of the property. Stamp duty is a self assessment tax - you get it wrong, you will be hit with penalties and interest.
Thanks mf1
So the kids will have to pay a reduced rate of stamp duty on the 500,000.
Even though they buy the house for 100,000.
Have i got this right?
Cheers
!RAY