Advice on parents will

Hi,

My father has made his will, in which he has divided whatever money he leaves between me and my four siblings.

He has not spoken to two of them for a number of years and recently advised he was changing his will and leaving them nothing. I advised him against this.....fearing huge anamosity towards me and two brothers and also a bad legacy for him to leave.

There is no property involved but probably some cash
He now is suggesting that I open a bank or credit union account and he deposits money to it.He would use it if he needs to but if and when he dies it won't be part of his estate and so the others won't know about it.

Apart from my discomfort, I am wondering would I have to pay tax on a sum lodged into a newly opened account in my name? Would the others be able to find this money? They don't have any idea of my fathers finances presently.

Any other thoughts appreciated

Many thanks.

Your father can do whatever he likes with his own money.

He can gift you €3,000 each year tax free.

http://www.revenue.ie/en/tax/cat/gift-inheritance.html

He can gift you €225,000 tax free also which is the Group A threshold father to child.

http://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_acquisitions_tax.html

It is quite ok if he wants to give you money, but he shouldn't be asking you to operate a shadow bank account for him.

He should do everything above board, change the will to name the beneficiaries he wants to inherit his assets, and enjoy the rest of his days with you and the siblings who are important to him.

Thanks for that. I agree. Think I'm more concerned with the fallout!

If he hasn't spoken to two of his offspring in years, there is no relationship there on both sides. I appreciate the fallout for you when the time comes, but it is not the fault/decision of you and the other beneficiaries. You need to steel yourself to deal with the situation when/if it arises.

There are two things as well that you need to be aware of:

S21 of Credit Union Act allows a member to make a nomination regarding his account in the event of death. This means that €23,000 maximum would pass to the nominee outside of the will, but not the balance.

S117 of Succession Act allows for children to take an action against the estate if they have not been properly provided for.

So if your father cuts out 2, and there are reasonable assets - and he did not gift them before his death - and the remaining two inherit - then the other 2 might succeed.

It should be noted that the costs of the action is borne by the estate.

There is obviously a bit more to this and I don't have other potentially relevant facts.

Bear in mind what other posters have said about gifting and capital acquisitions tax.

Thanks Wizard Dr...

Do you know can the credit union ac. Holder choose more than 1 nomimee? Would this all be made known to all family?

Thanks

feena said:

Thanks Wizard Dr...

Do you know can the credit union ac. Holder choose more than 1 nomimee? Would this all be made known to all family?

Thanks

Click to expand...

Yes, several people can be named as nominees. The credit union will not discuss it with anyone else or disclose it short of a court order.

STEINER said:

If he hasn't spoken to two of his offspring in years, there is no relationship there on both sides. I appreciate the fallout for you when the time comes, but it is not the fault/decision of you and the other beneficiaries. You need to steel yourself to deal with the situation when/if it arises.

Click to expand...

I don't agree with this at all, it risks his relationship with his brothers.

Slim is right - but the combined amount cannot be more than €23k and Slim's point on confidentiality is something a Credit Union would take seriously.

Also Bronte point would be even more acute if the disinherited siblings realised they could take an action under S117 of Succession Act - funded by the Estate.

So peace making should break out! Think of the money!

We are talking about adult children here. I was involved in a similar scenario recently where one adult child was well preferred in the will to other siblings. One of the siblings took advice from an experienced solicitor who advised against taking a case as the burden of proof is extremely high, particularly where education has been completed and there is no rationale for an expectation of a large bequest. She was also advised that her own costs would only be paid by the estate if she won the case. She took the advice and did not proceed. It would be interesting to hear from any solicitors who have experience of such cases!

@44Brendan
The burden is on balance of probabilities - but the Solicitor may have been saying that as the child's education had been completed that substantial benefit had already been received.

The distinction I was making was if the sibling had derived no benefit - probably unrealistic and then you are into weighing up situation.

Costs are at discretion of Court and really what that means is that if you have a reasonable case - even if court finds against you - costs might be awarded. Costs might be denied of somebody was unreasonable. Maybe Solicitor felt child was unreasonable and rather than say it unvarnished, sugar coated it.