Buying the family home - a good idea?

Correct, gift tax applies, but there are high exemptions. Unless it is a multi-family house in Munich ...

It is not a gift, but a purchase. Of course, if sold below value, one could assume a partial gift.

Why the restriction? Valuable houses may also be given away as gifts. The owner can freely dispose of their property (restrictive here could be: registered encumbrances in the land register). Gift tax may possibly apply, is that what you mean?

Yes. Rhineland regards

It is not a gift, but a purchase. Of course, if sold below value, one could consider it a partial gift.

Oh, yes, that is correct!

Oh wow! Really great forum! I neither expected such quick responses nor so many helpful answers.

I almost feared that there wouldn’t be a single point of contact. But that’s how it is.

To shed a little more light on the matter:

Yes, my father needs money. He does have a fairly decent pension, but of course, he still has to limit himself and he is constantly worried that it might not be enough. He is also looking for small jobs. I just think he has worked enough in his life and should enjoy his pension. The house sale story doesn’t come from him either, it’s an idea of mine to get him money, but also for me to benefit, since unfortunately, I’m not able to just give money away. I also don’t know if he would agree, but if I make him this offer, the feasibility should already be clarified.

Another, not entirely selfless reason is: My father believes he knows how inheritance works. The problem is, he is a widower and has remarried. My father now believes that since he married this woman only after the house was already there, she is not entitled to inherit the house. For him, it’s clear that my brother and I will inherit the house. He resists getting advice and there will be no will made. Because, it’s obvious who inherits. But I was explained the order of inheritance in this case as follows: If my father dies first, the stepmother inherits 50%, and my brother and I inherit 25% each. Correct me if this advice was wrong.
My brother has no interest in the house. But I have already thought about whether he could at least be paid a small sum. By buying it, I practically want to preempt the “wrong” inheritance.

Thanks again for the many detailed answers.

Best regards
Bola

I understand your motivation, but you are taking on quite a bit of risk. What do you want to do with the house if you never want to live in it?

Perhaps in this particular case a donor annuity or reverse mortgage would also be more suitable to provide money to the father if the children do not want the house anyway.