Will 5th of farm and inheritance tax

[Zeus2020]

Hi

I need some legal advice. I’ve lived on my brothers farm and house for the last 15 years for various caring needs to our mother etc.

My brother died last year he has left it to all his sisters I have no problem with this, my problem is I have a house in my name. I have not lived there for the last 15 years. My son lives there now. Can I transfer this house to him under Trust as he is only 20 and then can I reduce my inheritance tax and claim that my brother's house was my primary residence for the last 15 years. Legally is this possible as time is running out and probate due any day now, the solicitor says not to worry … but other people telling me I will be stuck with big tax bill.

Any advice appreciated.

P.S. Not worried about the house being sold or farm as will jump this bridge when it comes as money owed to banks so they have first call on everything before we can even contemplate what we will do long term.

Moderator note: Paragraphs applied for ease of reading.

 

[cremeegg]

To get any useful help here you will need to explain the situation more clearly.

You have a huge amount of info bundled into one paragraph, and for me at least it is confusing.

If your brother 'left it all to his sisters, I have no problem with this' why do you have an inheritance tax problem (or are you one of the sisters).

What is the value of your inheritance, if any.

 

[Zeus2020]

Ok thanks cremeegg
brother died 2021 left farm and house to his five sisters (of which I’m one of )in equal shares
i have lived on the farm and house for the last 15 years
the only thing preventing me claiming this as my principal primary residence and thus no inheritance tax is I have a house in my name, my son now lives in this house ,can I put this house in trust for my son as he is only 20 ,then I wii have no other assets in my name and hopefully wont have to pay inheritance tax

now on a different theme

value of asset is 1.8 million but money is owed to banks ,both pepper and AIB against farm
my brother borrowed very little money from them 57 000 euros in 1993 from Irish nationwide (now pepper) endowment mortgage payed back 146 000 euro but they are still looking for more money
same with AIB borrowed 31 000 pounds in 2001 tried to sell sites to pay off this loan but due to historical nature of land no planning permission granted thus nobody bought these sites ,
he sold his cows in 2008 gave them €22000
he sold Kerry coop shares in 2009 and gave them this money, don’t know how much
sold milk quota in 2011 don’t know how much for and gave them this money
Both pepper and AIB did try reposession but don’t know what happened as don’t have files
but in the final correspondence from AIB they say he owes €146 ,147 in 2013 and then left things in vains i think is the term they won’t release the files to solicitor anyway it’s a very interesting case the man did everything possibly he could to repay his depts short of selling
hope this makes it clearer any advice welcome

 

[Steven Barrett]

He is talking about the dwelling house relief.

You cannot claim it if you already own a house. If you are putting it in trust, you still own it, so the exemption still won't apply to you.

 

[Groucho]

but in the final correspondence from AIB they say he owes €146 ,147 in 2013 and then left things in vains i think is the term they won’t release the files to solicitor

Might that term be "in abeyance" by any chance?

 

[Zeus2020]

Hi Steven thanks for reply ,at least now i know that is a non runner
and Groucho when I spoke with solicitor he said “left in vains “but did not have the whole file
any other thoughts I think we with just have to ride it out and come to some kind of reasonable compromise