Uncle wants to will house 100k

[barepockets]

Hi

An Uncle wants to will his house to me or to one of my kids.

The house is worth less than 100k. I would like him to leave it to my son.

What is the best way to do this - gift it or will it?

He is keen that CAT ot CGT is kept to a minimum! Or if anyone has any other suggestions please let me know.

Thanks

 

[Brendan Burgess]

Is the house his home or an investment? If it's his home, there will be no CGt on it. If it's an investment, there will be cgt if he sells it for more than he bought it.

If he leaves it to your son, your son will be liable for CAT on any amount over €15,000 at 33%. (if you uncle pays CGT on the sale , the CAT will be reduced by the amount of CAT paid, I think - check this out though)

If your son lives in the house as his home for 3 years before he gets a gift of it or before he inherits it, he will not have to pay any CAT on it as long as he lives in it for a further 6 years.

 

[T McGibney]

If it's an investment, there will be cgt if he sells it for more than he bought it.

But not if he wills it, which is what he is intending to do.

 

[Brendan Burgess]

But not if he wills it, which is what he is intending to do.

Good point. I was thinking that he would be gifting it and therefore selling it.