1 in 10 inherited their home

elperello

https://www.boards.ie/discussion/comment/120003052#Comment_120003052

It's interesting that you say that, I was just thinking that nothing in either thread has convinced me that either paying IT or having any of my family pay it is a good idea.

With this in mind I have made the necessary arrangements.

elperello

https://www.boards.ie/discussion/comment/120002969#Comment_120002969

Can't argue with your figures but would a 60+ inheritor on JSB be a likely candidate for a 25 year mortgage taking almost half their income?

magicbastarder

then they sell the house. they still walk away with half a million quid, and buy a house for half a million if they want to.

remember - by definition they've not been living in the house, and they've not 'earned' the house.

if i was on JSB in my 60s i think i wouldn't want the house anyway; if i couldn't afford or couldn't arrange a mortgage like that, the cash would be far more useful than a house worth double the national average.

OEP

https://www.boards.ie/discussion/comment/120003358#Comment_120003358

Then they sell the house and pocket 512,550 after paying tax and go on to live a much more comfortable retirement.

Beigepaint

Relieved to see the last few responses in this thread. I was starting to think I was the only person not inheriting a €500k inner city bungalow from my estranged parents.

elperello

https://www.boards.ie/discussion/comment/120003379#Comment_120003379

If you took the cash you would lose all the means tested benefits you were entitled to anyway.

I suppose the bottom line is that neither you or I are likely to be in such a position.

No matter how long we discuss this matter I doubt we will get anyone posting how pleased they were to pay IT.

Most of us with a bit of knowhow will legally avoid it.

OEP

https://www.boards.ie/discussion/comment/120003334#Comment_120003334

I don't think there is any convincing someone that is against IT that it as good idea, which is fine it's your opinion. However I believe people should at least admit that inheritance is a handout, and the people receiving it did nothing to earn it but be born to the right parents and that they should also think twice about complaining about other sections of society that receive handouts but will be unlikely to ever receive inheritance.

I hope my parents spend it all enjoying the rest of their lives and leave nothing, that's the best way to avoid inheritance tax.

magicbastarder

or leave it to charity, rather than spending it for the sake of spending it.

Allinall

https://www.boards.ie/discussion/comment/120003468#Comment_120003468

I can't understand this line of thinking.

I would love to be in the position of having to pay inheritance tax. The more the better.

DownByTheGarden

https://www.boards.ie/discussion/2058275834/1-in-10-inherited-their-home

Yeah im not buying that either.

There were big families unit not too long ago. It would have been impossible for 1 in 10 to inherit a full home I think. And anyway, so what. I didnt inherit anythig, but i would like to leave my children homes if i could instead of having them have to compete for homes with everyone else when there arent enough.

bucketybuck

https://www.boards.ie/discussion/comment/120003475#Comment_120003475

I find it strange that people have a problem with a very simple concept, that of parents looking out for their children. Because parents providing for their children after death is effectively what inheritance is.

The family unit is an important part of humanity itself and yet today we have people who consider it nothing more than a handout to be gouged from.

Whats next lads, if granny babysits for a night should that be considered benefit in kind?

OEP

https://www.boards.ie/discussion/comment/120003599#Comment_120003599

And what is stopping them from providing for their children (likely 50+) after they die at the moment?

Jmc25

https://www.boards.ie/discussion/comment/120003599#Comment_120003599

Nobody here is arguing against the concept of inheritance. Parents are perfectly entitled to pass their wealth onto their children, and to accommodate this there is a very generous tax free allowance of 335k.

It was news to me when I read on this thread, but it seems if the person inheriting the house already lives there then they actually don't pay any tax on it at all. Again, very generous and reasonable.

The state is absolutely not out to screw anyone on this one.

elperello

https://www.boards.ie/discussion/comment/120003533#Comment_120003533

The issue is quite polarising.

You are clearly more generous than me.

In one example quoted here someone suggested that paying 80k IT and getting 500k is a good deal.

Why would you if you can legally avoid it?

80k to Revenue or a nice new car?

DFB-D

https://www.boards.ie/discussion/comment/120001130#Comment_120001130

It's a very unfair tax, especially as our government squanders the money.

They have the tax take, but buying social housing at rates more than the average person can afford by mortgage and every other mess they are involved in means it is still not enough.

Max 10% CAT, and only provide social housing to those who don't work and have no prospective work in areas like Leitrim, would be far more reasonable.

Donald Trump

https://www.boards.ie/discussion/comment/120003599#Comment_120003599

Would it not be more beneficial for them to receive it while they are alive and young enough to do something with it? Not only that, you can give 3k per year as a gift without it coming off lifetime thresholds. If both you and your child are married - obviously not to each other unless you are from Offaly - that means you can effectively gift them 12k per year, plus another 6k per year per grandchild if you have them. If your grandchild is married, that becomes 12k per year again for every grandchild.

If you have an investment, then you will pay tax on the income or gains and then the child might have to pay inheritance tax on the remainder. Why not gift it to them now when it might be valued below the threshold? They will pay the tax on any increase in value but won't have to pay inheritance tax on it.

Simple example to illustrate. Bucketybuck has 300k he wants to give to his child. It can be invested now and the dividend income after tax can be reinvested so that it becomes 600k when bucketybuck dies. If you gift it today then there is no inheritance tax due and they will end up with 600k. If you wait until you die to give it to them, they will pay inheritance tax of about 100k on it. But it would have been avoidable (if that is your intention to give it to them)

If you want to leave your 5m Euro house to your child, you can simply gift it to them before they move out of it as a young adult. Obviously you run the risk of them selling it out from under you, but you could probably give yourself a life interest in it first.

OEP

https://www.boards.ie/discussion/comment/120003858#Comment_120003858

People should legally avoid it if they don't want their children to pay it, that's their perogative. I do think the government should make it more difficult to avoid it but its not high on the list of things I give a sh*t about.

L1011

https://www.boards.ie/discussion/comment/120001588#Comment_120001588

If you have been on the tenancy for some period I can't be arsed googling - as in living there and paying rent based on your income in addition to the parents - you can take over the tenancy.

Plenty of people have bought the houses out and then they're treated exactly the same as any other house on inheritance.

Strumms

https://www.boards.ie/discussion/comment/120002876#Comment_120002876

Ive spent a reasonable amount of time in Denmark and while tax is high, wages are too. Very high.

also the tax you do pay is enabled back into services and … for such a country.. 5.86 million population… they are beyond well of for..

• healthcare… one of the best healthcare systems on the planet
• public transport…
• Good social welfare / supports

so people working know that they are getting bang for the efforts and bang for the buck.

magicbastarder

i think someone posted in the other thread that inheritance taxes bring in ~€180m a year in ireland, for taxes on group A inheritances. that's less than 1% of the value of income tax receipts. so yes, they are getting better healthcare/PT etc., but they are paying noticeably higher tax rates.

in short, i don't think the 'other socially leftish countries don't have inheritance taxes and that informs the debate here' argument is that useful.

John_Rambo

https://www.boards.ie/discussion/comment/120004357#Comment_120004357

Good for them if they get a leg up.

herbalplants

https://www.boards.ie/discussion/comment/120003599#Comment_120003599

Thank you!! 🙏 You have described very well what I mean. Yes, it is not a handout, it is a wish from the parents to the kids. The parents worked their backside off, pay high taxes, get nothing for these taxes, then their wish dying is their kids get the benefit of the house. What is so hard to understand! Why would someone not wish that for their kids. It is not a handout, it is the parents wish. Jesus!

herbalplants

https://www.boards.ie/discussion/comment/120004469#Comment_120004469

Oh thank you for sharing your experience. Don't forget the education not only free in Denmark but also you get paid attending college. Yet a country that doesn't rob the dying people with inheritance tax.

herbalplants

https://www.boards.ie/discussion/comment/120003996#Comment_120003996

Again Donald your responses are text book responses, not based on any life experience. Do you just read manuals on your free time. Seems that way.

Donald Trump

https://www.boards.ie/discussion/comment/120005844#Comment_120005844

What are you on about? I give you facts. I can only explain them to you. I can't understand them for you.

I understand you might feel special and want special rules for yourself... but it might be no harm to read a few "textbooks" yourself maybe. There is no point coming on here and moaning about something that isn't actually a problem because you really want to moan about something else but are afraid to state the reality.

You're not worried about wealth you leave to your own kids being taxed because if you were, you can basically do it so they don't have to pay any. In reality, what you are worried about you having to pay a little bit of tax on what you are left from your parents. Dollar signs in the eyes. Why not just have the talk with them and see if they are really that bothered about it? If they are, they can take steps now to minimise any tax you might have to pay. Talk to them about it rather than whinging on an anonymous message board if it bothers you that much. Or if you think it bothers them so much. They should be delighted to set it up for you if that is their priority

We had this on the other thread. Some poster going around and around in circles who wouldn't just come out and say their intentions for the house they are hoping will be left between them and a sibling. They were going to have to pay 75k tax on a half share in a 1.2m house. Going on about "family home" etc and a poor destitute child not being able to afford the 75k ....... trying to imply that they would want to keep the house .... but not able to account for buying out the other sibling's 600k half. Bu they were afraid to just say "yeah, we're gonna sell it and split the proceeds as soon as we can, but I want to keep all my half with no tax". That's not an unreasonable or unexpected position. But it doesn't garner much sympathy.

Donald Trump

https://www.boards.ie/discussion/comment/120005832#Comment_120005832

It's a bit silly for a dying person not to waive an inheritance. They would have to pay tax and then whoever inherits their estate would have to pay it again.

Because, as you surely know, the testator is not charged inheritance tax. Nor is their estate. The beneficiary might be charged though

Flinty997

https://www.boards.ie/discussion/comment/120003599#Comment_120003599

It seems that some people don't have much if any connection to their family. So they don't see any value or the effort and time that goes into that.

Donald Trump

https://www.boards.ie/discussion/comment/120006028#Comment_120006028

Some see their family as more than dollar signs Flinty997.

StupidLikeAFox

https://www.boards.ie/discussion/comment/120005790#Comment_120005790

If you are inheriting a house worth 700k the chances are that your parents paid a fraction of that for it, and any increase in value is not very much to do with your parents and almost certainly nothing to do with you

Your argument could equally be applied to any tax. Income tax is paid on earnings, "the government" didn't earn that. VAT is paid on sales, "the government" sold nothing, etc etc.

Flinty997

https://www.boards.ie/discussion/comment/120006063#Comment_120006063

I didn't mention money. But it's the only thing you mentioned in reply.