A good friend of mine still lives with her parents in her early 40s.However there are probable many more situations where the son or daughter has significant savings and is more equipped to pay a tax bill than someone renting.
A good friend of mine still lives with her parents in her early 40s.
Her only sibling moved out years ago and bought a house with his wife.
Both siblings in good careers with above-average incomes.
Seems bizarre that one would pay CAT on the parents’ estate of about €1m and the other won’t.
While it's their parents house it's her home, not his. The law cannot deal with every eventuality. What do you think the law should be in this situation?A good friend of mine still lives with her parents in her early 40s.
Her only sibling moved out years ago and bought a house with his wife.
Both siblings in good careers with above-average incomes.
Seems bizarre that one would pay CAT on the parents’ estate of about €1m and the other won’t.
I think children with means should not benefit from a tax exemption.What do you think the law should be in this situation?
Steady on!it is vastly more financially beneficial to structure your life to go after this relief than work a regular job
If your parents estate is worth €5 million then it certainly might.Steady on!
I’m an only child and my parents’ estate might be €1m.
My CAT bill would be €200k and I’m sorry but it’s not worth selling my house and moving into their spare bedroom for what could be a few decades.
Steady on!
I’m an only child and my parents’ estate might be €1m.
My CAT bill would be €200k and I’m sorry but it’s not worth selling my house and moving into their spare bedroom for what could be a few decades.
If your parents estate is worth €5 million then it certainly might.
I’d have to accurately forecast dates of death and then remain resident for six years after.Anyway, you only have to live there for four years. That's €50k a year.
Progressive property tax rates and progressive inheritance tax rates seem fairer, to me anyway, than progressive income tax rates.I would cap dwelling home relief at something like €500k but the idea that lots of people plan their lives around the existing regime is fantastical.
Wrong on both counts.I’d have to accurately forecast dates of death and then remain resident for six years after.
I thought that the requirement to remain resident for 6 years was still in place.Wrong on both counts.
Not for everyone of course! But €200k is a lot of earned after tax income to a lot of people so I have no doubt some would make some extreme decisions to go after it in your case.Steady on!
I’m an only child and my parents’ estate might be €1m.
My CAT bill would be €200k and I’m sorry but it’s not worth selling my house and moving into their spare bedroom for what could be a few decades.
There are exemptions.I thought that the requirement to remain resident for 6 years was still in place.
- the house continues to be your only, or main, home for six years after the date of the inheritance. This does not apply if you:
- are aged 65 years or over at the date of the inheritance
- are required by reason of employment to live elsewhere
- or
- are required to live elsewhere because of mental or physical infirmity, and this is certified by a doctor.
Of course it is.I don’t think anyone could sensibly argue this is a good relief in the extreme cases and it be could be addressed with a pen stroke.
Under the current rules he wouldn't but the argument for change is that he'd still be able to buy a different home with what will still be a very large transfer of unearned wealth.Of course it is.
I know of someone who would be classed as vulnerable and who has lived his lifetime in one of the premium areas Dublin 4, having previously lived there with his parents. Why should he have lost his home after his second parent died?
Yes, but those are exceptions so under normal circumstances it is correct to say that they'd have to remain in residence for 6 years after inheriting it.There are exemptions.
The chap is barely able to tie his shoelaces, let alone manage large sums of money or the purchase of a property.Under the current rules he wouldn't but the argument for change is that he'd still be able to buy a different home with what will still be a very large transfer of unearned wealth.
The post I replied to making that point didn't make that distinction.Yes, but those are exceptions so under normal circumstances it is correct to say that they'd have to remain in residence for 6 years after inheriting it.