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.
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 of Dublin 4, in the house that was previously the home of his late parents. Why should he have lost his home after his second parent died? He probably would have ended up homeless.
So many ways to deal with this. Put in a reasonable exemption, say €1m. After this €400k applies. So he could solely inherit a €2m home with a €200k tax bill.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 of Dublin 4, in the house that was previously the home of his late parents. Why should he have lost his home after his second parent died? He probably would have ended up homeless.
1,000,000 - 400,000 = 600,000So many ways to deal with this. Put in a reasonable exemption, say €1m. After this €400k applies. So he could solely inherit a €2m home with a €200k tax bill.
If feeling extra generous the state could hold the €200k as a charge against the property until his death so he doesn’t have to move out.
This is ignoring the fact this individual could easily have had siblings who won’t play ball. Would the state step in here to buy them out for him?
It’s not a reasonable expectation that the state should facilitate someone living in a multi million euro house tax free in all circumstances. There are plenty of folk just as vulnerable as your friend here who have no house at all to inherit. We have a social welfare system to provision for this.
Forgive me if I can’t cry tears for the vulnerable person being put forward to justify multi million tax breaks for the masses….as said before, hard cases = bad laws
The ultimate irony of this example is that if the option of his remaining in his home for the remainder of his life hadn't been a viable one, he'd have probably gone into long term residential care decades ago, at staggering cumulative cost to the StateForgive me if I can’t cry tears for the vulnerable person being put forward to justify multi million tax breaks for the masses….as said before, hard cases = bad laws
If feeling extra generous the state could hold the €200k as a charge against the property until his death so he doesn’t have to move out.
Just don’t accept that with some reasonable supports an individual with €1.8m cannot possibly house themselves. 99.99999% of people who have ever lived manage with far less.The ultimate irony of this example is that if the option of his remaining in his home for the remainder of his life hadn't been a viable one, he'd have probably gone into long term residential care decades ago, at staggering cumulative cost to the State
Yes, hard cases make bad laws but equally hard laws make bad cases.
Comes back to the arguments of the recently closed thread on inheritance tax generally as to whether it’s actually ‘your assets’ or someone you are related to’s assets…I’d have thought the answer was pretty clear but judging from the views in that particular post, some people are not for convincing - so I won’t try!The state forcibly extracting less of your money/delaying forcible extraction is not the state being generous
I never mentioned €1.8m, or indeed any figure.Just don’t accept that with some reasonable supports an individual with €1.8m cannot possibly house themselves. 99.99999% of people who have ever lived manage with far less.
A figure was mentioned because a core principle of my point is that the reliefs could be made so generous that nobody in the described scenario could be left with anything less than an extraordinary tax free sum…just it should not be unlimited.I never mentioned €1.8m, or indeed any figure.
And what makes you certain that even if a vulnerable person finds themselves with such a sum in liquid wealth, they can always manage it sufficiently competently to ensure that they can live independently?
Weren't there cases of homeless people dying on the streets of Dublin who had substantial balances in the bank but couldn't put rooves over their heads?
How sure are you of that?The vast vast majority of vulnerable people won’t have the luxury of a large inheritance.
Given the median inheritance from a parent is €100,000 per CSO - pretty sure.How sure are you of that?
The Will of a parent can be deemed invalid if it doesn't make adequate provision for the needs of a surviving child. It's not exactly unknown for a vulnerable adult child to inherit either an ownership interest in the family home or a life interest therein.
Isn't €100,000 a pretty large inheritance?Given the median inheritance from a parent is €100,000 per CSO - pretty sure.
It’s the median, so definitionally it is neither small nor large.Isn't €100,000 a pretty large inheritance?
The median of what though? Many people inherit either nothing or negligible sums from their parents.It’s the median, so definitionally it is neither small nor large.
Any non-zero intergenerational wealth transfer.The median of what though?
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