spinning_plates
Registered User
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Hi,
Relation: Mother In Law (Widowed)
Principal private residence: Sold
Cash assets: 200K (for purposes of calculation)
Mother in Law requested that she go into a nursing home but was rejected (Fair deal scheme) on not being in a situation where she is in need of it yet. She's too healthy and able to manage (but it was her wish at the time). She has now sold her house and rents local to us. (We know/knew that the sale of the house was not financially prudent but this was her wish as she did not wish to rent her family home.).
If we ignore the 36k (ish) cash exemption and assume a current cash asset of 200K. My MIL now wants to gift us 100k.
I understand that she will be assessed on the 200K at 7.5% (lets say 7% for the calculation) if she gives it to us in the prior 5years before her admission to care. (200K @7% =14K a year).
Within 7 years that 100k is depleted to 98K.
1.Any info on how the claw back of these monies would be handled during her 8th and subsequent years in care?
2.How is that 14K for year 8 paid. If we as her children are liable (which I would expect), are we then taxed on that 14K per year as a gift to her? Or can we claim tax back on that subsidy that we are paying. (I doubt its considered a subsidy from us by the HSE
)
3.She's in relatively good health but we are trying to assess if we should accept the inheritance on the basis that she may not need care until after 6 years after gifting it to us? OR accept it and keep it for future payments if she does go into care within the 5years OR not accept it.
The above figures are just for simplicity but the same might apply if she gave the 100k to charity and was childless. I doubt the charity would be liable?
HSE helpline could not advise/inform.
Regards and Thanks
Relation: Mother In Law (Widowed)
Principal private residence: Sold
Cash assets: 200K (for purposes of calculation)
Mother in Law requested that she go into a nursing home but was rejected (Fair deal scheme) on not being in a situation where she is in need of it yet. She's too healthy and able to manage (but it was her wish at the time). She has now sold her house and rents local to us. (We know/knew that the sale of the house was not financially prudent but this was her wish as she did not wish to rent her family home.).
If we ignore the 36k (ish) cash exemption and assume a current cash asset of 200K. My MIL now wants to gift us 100k.
I understand that she will be assessed on the 200K at 7.5% (lets say 7% for the calculation) if she gives it to us in the prior 5years before her admission to care. (200K @7% =14K a year).
Within 7 years that 100k is depleted to 98K.
1.Any info on how the claw back of these monies would be handled during her 8th and subsequent years in care?
2.How is that 14K for year 8 paid. If we as her children are liable (which I would expect), are we then taxed on that 14K per year as a gift to her? Or can we claim tax back on that subsidy that we are paying. (I doubt its considered a subsidy from us by the HSE
)3.She's in relatively good health but we are trying to assess if we should accept the inheritance on the basis that she may not need care until after 6 years after gifting it to us? OR accept it and keep it for future payments if she does go into care within the 5years OR not accept it.
The above figures are just for simplicity but the same might apply if she gave the 100k to charity and was childless. I doubt the charity would be liable?
HSE helpline could not advise/inform.
Regards and Thanks