non Cont Social Welfare Query re Means Test

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Elkie01

Guest
My dad is an 82 year old pensioner on the Non Contrib Social Welfare pension of approx €184 per week He is also in receipt of a small UK pension. He has a been a widower for over 5 years. Up to now he has been farming a very small farm, which he is now signing over to my brother. Therefore my father will have no assets other than his own home which will be on a few acres. He has signed over sites etc to my sisters. He only has about €25,000 in a cashsave account and no other savings so he literally is living off of his pension

My brother has said he will give my dad money for the farm. Would I be right in saying that my father should be able to recieve about €40,000 from my brother without paying tax on it? Is there an amount that someone in my dads position would be able to recieve before it would affect his pension entitlements?

Or does anyone know who i should talk to about this? Thanks!
 
Your father should ask to have his means reviewed. If he is only getting 184 per week, he obviously has some means already assessed against him. He is allowed have 20k in savings before it affects his pension. After that, he loses one euro of the full rate for every 1k above 20k.

You might want to post in the taxation forum for more response to the tax question.
 
Thanks for reply. i know the last time he was means tested the farm income was taken into account so that will change now and obviously and payments made to him by my broter will be taken into account instead.
 
I failed to mention that he loses 1 euro only for the first 10k over 20k, then 2 euro for the next 10k, then 4 euro for the balance.

If he has 60k in savings, he will have means of €70 per week taken off the full rate of pension (€212), giving him 172 euro per week (first 30 euro means not deducted).

Also there may be means from the UK pension.
 
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Maybe contact the IFA? I thought there were specific incentives for signing farmland over to children, but I could be wrong.
 
SarahMc said:
Maybe contact the IFA? I thought there were specific incentives for signing farmland over to children, but I could be wrong.
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You might be thinking of the Early Retirement Scheme for farmers, but the applicant must be under 66 years of age for this.
 
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