S
steinbock12315 Apr 2019 08:04Good morning,
I’m new here :-)
I hope I have chosen the right category.
I’m not very familiar with this and have a specific question—I hope someone can answer it.
Here’s the situation:
My boyfriend (27)
His brother (24)
Their parents (around mid-50s)
The brother already has a building plot next to the parents’ property. At that time, my boyfriend and I were not asked. It wasn’t possible either, since he finished his training late and simply didn’t have money for a building plot.
The parents want us to move into the house at some point. For me, that’s unthinkable and absolutely out of the question. My boyfriend accepts this.
There has been talk several times about transferring the house ownership. Does that even make sense if you never want to live there yourself? When the parents pass away, won’t all the taxes and fees become due eventually?
Or am I misunderstanding something?
We wouldn’t have to pay out the brother; the parents would cover that.
By the way: we’re not married yet, but plan to be eventually.
Best regards,
Steinbock123
I’m new here :-)
I hope I have chosen the right category.
I’m not very familiar with this and have a specific question—I hope someone can answer it.
Here’s the situation:
My boyfriend (27)
His brother (24)
Their parents (around mid-50s)
The brother already has a building plot next to the parents’ property. At that time, my boyfriend and I were not asked. It wasn’t possible either, since he finished his training late and simply didn’t have money for a building plot.
The parents want us to move into the house at some point. For me, that’s unthinkable and absolutely out of the question. My boyfriend accepts this.
There has been talk several times about transferring the house ownership. Does that even make sense if you never want to live there yourself? When the parents pass away, won’t all the taxes and fees become due eventually?
Or am I misunderstanding something?
We wouldn’t have to pay out the brother; the parents would cover that.
By the way: we’re not married yet, but plan to be eventually.
Best regards,
Steinbock123
Why do your friend’s parents want to transfer ownership of the house?
Who do they want to transfer it to? Your friend alone or both of you?
Who will be responsible for the ongoing house expenses afterward?
About three years ago, at my husband’s request, we arranged all the financial matters with our children. We granted lifetime residential rights on the ground floor and transferred ownership only to our son, who lives in the house and wanted to live there.
We share the costs of the transfer and the ongoing house expenses equally with him.
If you never intend to live there anyway, I don’t see much point in transferring ownership.
Who do they want to transfer it to? Your friend alone or both of you?
Who will be responsible for the ongoing house expenses afterward?
About three years ago, at my husband’s request, we arranged all the financial matters with our children. We granted lifetime residential rights on the ground floor and transferred ownership only to our son, who lives in the house and wanted to live there.
We share the costs of the transfer and the ongoing house expenses equally with him.
If you never intend to live there anyway, I don’t see much point in transferring ownership.
S
steinbock12315 Apr 2019 08:46Why do your friend’s parents want to transfer ownership of the house?
-> I don’t know. I think it’s arranged in case of death. Maybe also because they want us to consider moving in there?
Who do they want to transfer it to? Your friend or both of you?
-> I think initially to my friend, since we are not married.
Who would pay the ongoing costs for the house afterwards?
-> That’s exactly the issue. My friend just thinks, great, but doesn’t think it through. There will be costs for the house and so on. At most, he might sell it after their death.
My husband and I sorted out all financial matters with our children about three years ago, at my husband’s request. We have lifetime residential rights on the ground floor and transferred ownership ONLY to the son who lives in the house and wanted to stay there.
We share the costs of the transfer and the ongoing house expenses with him equally.
If you don’t want to live there anyway, then I see little point in transferring ownership -> I really agree with that.
What would happen if the house is not transferred at all in case of the parents’ death?
-> I don’t know. I think it’s arranged in case of death. Maybe also because they want us to consider moving in there?
Who do they want to transfer it to? Your friend or both of you?
-> I think initially to my friend, since we are not married.
Who would pay the ongoing costs for the house afterwards?
-> That’s exactly the issue. My friend just thinks, great, but doesn’t think it through. There will be costs for the house and so on. At most, he might sell it after their death.
My husband and I sorted out all financial matters with our children about three years ago, at my husband’s request. We have lifetime residential rights on the ground floor and transferred ownership ONLY to the son who lives in the house and wanted to stay there.
We share the costs of the transfer and the ongoing house expenses with him equally.
If you don’t want to live there anyway, then I see little point in transferring ownership -> I really agree with that.
What would happen if the house is not transferred at all in case of the parents’ death?
Transferring the house makes a lot of sense because if 10 years pass before the parents pass away, which I assume, you can avoid inheritance tax.
Taxes and fees are not that high... and as long as the parents live there, they will handle those costs.
Since you are not married, everything will now go solely to your boyfriend.
If you don’t transfer it now, your boyfriend and his brother will inherit it equally, depending on how the building plot is handled that the brother has already received... and if the exemption limit is exceeded, you will have to pay taxes.
Taxes and fees are not that high... and as long as the parents live there, they will handle those costs.
Since you are not married, everything will now go solely to your boyfriend.
If you don’t transfer it now, your boyfriend and his brother will inherit it equally, depending on how the building plot is handled that the brother has already received... and if the exemption limit is exceeded, you will have to pay taxes.
@Snowy36
It would be important to know where the house or property is located in order to estimate an approximate value.
Each parent has a tax exemption allowance every 10 years. If the value falls below this allowance, only notary fees apply, and after 10 years, the next exemption can be used.
Transferring ownership (especially with larger assets or ownership of multiple properties) is always a good strategy to minimize inheritance tax. For the giver, it is possible to register usufruct rights notarized, so no issues arise.
It would be important to know where the house or property is located in order to estimate an approximate value.
Each parent has a tax exemption allowance every 10 years. If the value falls below this allowance, only notary fees apply, and after 10 years, the next exemption can be used.
Transferring ownership (especially with larger assets or ownership of multiple properties) is always a good strategy to minimize inheritance tax. For the giver, it is possible to register usufruct rights notarized, so no issues arise.
Inheritance tax only applies above €500,000 (approximately $540,000) per person. It sounds like the house is in a rural area and isn’t worth a million anyway. So the topic is irrelevant.
In the event of inheritance, each person receives half. However, if the property is transferred now, your friend will receive 100% of the house and 50% of the remaining assets after 10 years; otherwise, the house would have to be divided, or proportionally before the 10 years are up. (The notary will advise and explain everything in detail.)
Transferring the property now could be fair, especially if the brother has received a similar amount for the building plot.
Ongoing costs only relate to the property transfer tax, or other incidental expenses, right? I think this can be easily agreed on. Even if your friend pays these costs, they have essentially received property as a gift.
I would definitely go ahead with this. Just make sure to maintain fairness with the brother; the four of you will have to figure that out. You won’t be listed in the land registry anyway.
In the event of inheritance, each person receives half. However, if the property is transferred now, your friend will receive 100% of the house and 50% of the remaining assets after 10 years; otherwise, the house would have to be divided, or proportionally before the 10 years are up. (The notary will advise and explain everything in detail.)
Transferring the property now could be fair, especially if the brother has received a similar amount for the building plot.
Ongoing costs only relate to the property transfer tax, or other incidental expenses, right? I think this can be easily agreed on. Even if your friend pays these costs, they have essentially received property as a gift.
I would definitely go ahead with this. Just make sure to maintain fairness with the brother; the four of you will have to figure that out. You won’t be listed in the land registry anyway.