T McGibney
Registered User
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No that's not what I'm suggesting. My point is very clear. Read it again if it has eluded you.
No that's not what I'm suggesting. My point is very clear. Read it again if it has eluded you.Are you suggesting that people will spend their wealth rather than give it to their children because their children will have to pay tax on it?
232,000 Irish households had net wealth (assets less debt) of more than €1m in 2022. That figure is likely to have grown.A number of the posts on this thread are at the extreme end of things, e.g. €3m inheritance to children, businesses being inherited, etc. However the vast majority of cases will be much much less than that. As others have said, why should my hard work and savings (which have already been taxed to the hilt) be further diluted by the government dipping their hand in once again when they are passed on to my children. I may have accumulated those savings by being prudent/frugal and avoiding lavish spending. Why should I (or my children) be punished for that. Would it have been better to spend it all while I'm alive, possibly even spend it on my children so that they get the benefit while I'm alive? That appears to be what is being encouraged by such proposals. But wouldn't that leave me in a more vulnerable financial state as I get older?
So about 13% of the households, or in other words the vast majority have net wealth less than this.232,000 Irish households had net wealth (assets less debt) of more than €1m in 2022. That figure is likely to have grown.
Okay, I've read it again and it's not clear to me. Can you expand on it please?No that's not what I'm suggesting. My point is very clear. Read it again if it has eluded you.
It is amazing that inheritance insurance is such good value since it's insurance for something that will happen.Would insuring against the potential liability, or even saving for it, not be a consideration for those who don't want the recipients to have a tax bill?
"Inheritance taxes disincentivise work and sacrifice and actually encourage the wasteful dissolution of inherited wealth" isn't exactly cryptic.Okay, I've read it again and it's not clear to me. Can you expand on it please?
Great - if it's not cryptic, you'll have no bother expanding on it so Purple (and me, I must be a bit slow on the uptake this morning too) can understand what you're driving at."Inheritance taxes disincentivise such work and such sacrifice and actually encourage the wasteful dissolution of inherited wealth" isn't exactly cryptic.
The statement stands on its own merits. As such, I have no wish to expand on it.Great - if it's not cryptic, you'll have no bother expanding on it so Purple (and me, I must be a bit slow on the uptake this morning too) can understand what you're driving at.
Please don't put into my quotes, words that I did not utter.I fixed the quote too, as the work and sacrifice you referred to were the good and noble ones aimed at not being a financial burden on others in old age.
It is a good and noble thing to work hard and make sacrifices in order to avoid as much as one can ever do, becoming a burden on one's family, siblings or the State in advanced old age.
Inheritance taxes disincentivise such work and such sacrifices and, irony of ironies, actually encourage the wasteful dissolution of inherited wealth rather than its preservation and productive use.
"Inheritance taxes disincentivise work and sacrifice and actually encourage the wasteful dissolution of inherited wealth" isn't exactly cryptic.
That's odd, Brendan. It's a very straightforward point. I have seen people inherit very valuable assets and not bother to even maintain them because they perceive the work/risk/reward ratio not to be worth it. It's a key reason why there is so much dereliction in the country. Inheritance taxes impact on that ratio.I join with Purple and troubledman to say that I have no idea what it means either. Well, I suppose I understand what it means, but I don't understand how it means that.
Don't put words that I did not utter into a quote bearing my name. Whether or not my meaning is misquoted is beside the point.Here's what you said - where did I misquote you?
I have seen people inherit very valuable assets and not bother to even maintain them because they perceive the work/risk/reward ratio not to be worth it.
There's no accounting for folk, literally and metaphorically.That's odd, Brendan. It's a very straightforward point. I have seen people inherit very valuable assets and not bother to even maintain them because they perceive the work/risk/reward ratio not to be worth it. It's a key reason why there is so much dereliction in the country. Inheritance taxes impact on that ratio.
Maybe in this scenario your parent is letting the investment property fall into dereliction so that you inherit less and so have to pay less CAT.I hope you advise them against this ridiculous line of thinking.
If I inherit an investment property and I have to pay €660k CAT, I might resent it. But there is no advantage to me in letting the property fall into ruin. I am not getting the CAT back.
Yeah, that'll really stick it to The Man!Maybe in this scenario your parent is letting the investment property fall into dereliction so that you inherit less and so have to pay less CAT.
That's exactly the point. Human beings are routinely irrational, often to the point of remarkable stupidity and even beyond that.There's no accounting for folk, literally and metaphorically.
Why would anyone deliberately allow their wealth to diminish because they would have to pay less than a third of any increase in tax? It seems like a remarkably stupid thing to do.
The sort of people I'm referring to Brendan wouldn't ever dream of engaging with an accountant or any other professional advisor. Their money is too valuable to waste it like that.I hope you advise them against this ridiculous line of thinking.
| Inheritance value | Tax-free threshold | Taxable Inheritance | Tax (@33%) | Effective rate |
| 100,000 | 335,000 | Nil | Nil | Nil |
| 200,000 | 335,000 | Nil | Nil | Nil |
| 300,000 | 335,000 | Nil | Nil | Nil |
| 400,000 | 335,000 | 65,000 | 21,450 | 5.4% |
| 500,000 | 335,000 | 165,000 | 54,450 | 10.9% |
| 600,000 | 335,000 | 265,000 | 87,450 | 14.6% |
| 700,000 | 335,000 | 365,000 | 120,450 | 17.2% |
| 800,000 | 335,000 | 465,000 | 153,450 | 19.2% |
| 900,000 | 335,000 | 565,000 | 186,450 | 20.7% |
| 1,000,000 | 335,000 | 665,000 | 219,450 | 21.9% |
| 1,250,000 | 335,000 | 915,000 | 301,950 | 24.2% |
| 1,500,000 | 335,000 | 1,165,000 | 384,450 | 25.63 |
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