I find myself in the following situation:
My parents want to write over the house to my siblings and I (or potentially just me if sharing is not an option) in the not too distant future. The house has an official value for tax reasons of X, although if you were to sell it, you would probably get 50% more. There is no debt on the house.
Selling is not an option as my parents want to live in one of the appartments in the house until they’re no longer able to (without paying rent, I expect 20-30 years) and I’d also like to live there at some point.
Apart from completely throwing over my asset allocation ;-), I have a few things that I’d like to get your experience / view / advise on.
As my parents wouldn’t pay any rent, as far as I understood it I’d only need to pay wealth tax on the house without their appartment. Is that assumption correct?
Eventually when the rest of the inheritance is distributed, then it will be unlikely that as much money is around as the house is worth (x siblings) (unless my parents win the lottery). Therefore I’d need to pay out my siblings.
a) Is that based on the a) tax value or b) the market value at the time of writting it over / when the rest of the inheritance is distributed. I read an article about it that said market value at time of inheritance distribution.
b) This payout is only when inheritance is distributed and not at time of writting over the house?
c) The rental income that will be generated during that time will be mine is not eligible to be paid out to siblings as the house would be mine?
In terms of asset allocation, in my opinion it would then make sense to remortgage it straight away. If so for how much of its value?
How much of the value would you include to the FI-money? Current tax value minus potential payout to siblings?
I’m looking forward to hopefully getting some great answers