1 in 10 inherited their home

Donald Trump

https://www.boards.ie/discussion/comment/120006190#Comment_120006190

Correct. Given that it is the topic under discussion for most of the thread. Revenue don't take their cut in pounds of flesh.

Flinty997

https://www.boards.ie/discussion/comment/120006192#Comment_120006192

But not all the thread. My comment was in reply to the importance and value of the family unit.

Too many seem to be strangers to their family.

Donald Trump

https://www.boards.ie/discussion/comment/120006213#Comment_120006213

I know of a fella who owned a bit of property. Probably the guts of 2m worth or thereabouts that I'd have been aware of. He didn't have his own family. He only had some nieces and nephews. His brothers and sisters were all gone. He lived in a house that was a bit run down.

He got sick and had to go into a home. He wasn't expected to last too long. The nieces and nephews took it upon themselves to organise for the house to be refurbished ..... It was sold about 2 months after he went in (presumably to pay for the nursing home) so they were fairly on the ball!

Maybe you could argue that they were doing him a favour by helping him maximise the value of the property...............but I always thought it was a bit sad that they weren't as concerned to organise to refurbish the place and give him a bit of comfort when he was living in it. In reality he was never going to come out of the home.

Geuze

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

Will a bank give a mortgage to pay CAT?

Normally a mortgage helps you buy a house.

In these case you already own the house.

Will a bank give you a mortgage on a house you already own outright?

Donald Trump

https://www.boards.ie/discussion/comment/120006234#Comment_120006234

Yes. You are just using the house as security, I don't know why you think you wouldn't be able to mortgage a property you already own outright. You're the legal owner of any house once you buy it anyway

There are also equity release mortgages too if you need them

Flinty997

https://www.boards.ie/discussion/comment/120006233#Comment_120006233

There nothing in that story that makes sense.

Donald Trump

https://www.boards.ie/discussion/comment/120006244#Comment_120006244

Which bit are you having difficulty with?

The fact that a man got old?

The fact that he had nieces and nephews but none of his own kids?

The concept of a nursing home? The fact that a man had to go into one because he wasn't able to look after himself and none of his remaining relations were arsed enough to help him?

The concept of refurbishing a house?

Flinty997

That timeline is nonsense.

Beigepaint

Regardless of everything else said in the thread, inheritance tax is a rich people problem.

Cutting or reducing it is gifting rich people state money, and the shortfall will have be made up by a raised tax somewhere else.

I’m not in favour of that.

DFB-D

https://www.boards.ie/discussion/comment/120006283#Comment_120006283

Depends what you classify as rich.

The majority of people who are hit with some CAT, their parents saved money despite high rates of tax, temptations to spend on holidays, additional kids etc.

It is hardly gifting anyone state money?

But compare that to medical cards, travel cards, social housing (ironically each unit can be multiples of the CAT allowance to a child), rules about the number of kids to a room for the same social housing (many who buy privately have to exceed this limit).

We generate enough tax in this country to do without this tax, but we spend excessively on things which should be for basic necessity only.

Flinty997

https://www.boards.ie/discussion/comment/120006283#Comment_120006283

For someone to inherit means mostly a parent has to die. In most cases by the time that happens the child will already be in a career and have property of their own and family of their own. The child will already has established how rich they are going to be.

whatawaster

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

"get nothing for those taxes" - what are you talking about?

They didn't drive on roads? Their kids didn't go to school. They or their family never availed of healthcare? Never benefitted in any way from living in a safe, stable society?

Donald Trump

https://www.boards.ie/discussion/comment/120006256#Comment_120006256

Oke dokey. If you say so.

Any particular fundamental rule of physics or legal reason why it is so?

Donald Trump

https://www.boards.ie/discussion/comment/120006740#Comment_120006740

I'm aware of a very famous stable genius ex-President billionaire who people tried to denigrate by saying he got a handout of hundreds of millions from his father rather than doing all the work himself. Do they not know that it wasn't a handout? It as a gift.................Incredibly different .... apparently

magicbastarder

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

you seem invested in the fact that the parents put in a lot of hard work to get the house; and fair play, they did. but if 'hard work' and 'earning' is such an important part of the equation, how come that vanishes in a puff of logic when the house is being given to someone who didn't work hard for that house, for whom it was as earned as a present would be?

again, why is society OK with me being taxed at approx 50% on a bonus i would earn for putting in a year's hard graft in my job, but if a parent gives me a third of a million quid because they like me, that's sacrosanct?

magicbastarder

i remember the first time the weirdness of the situation struck me - in my early 20s, i bumped into a guy i'd been at school with when a bunch of us all ended up down the pub through a random coincidence. he was cagey about what he was doing, but someone else told me later in the evening; he was getting IRL£800 a week pocket money from his dad - £40k a year.

i was on £16k at the time, and paying tax on it; maybe his family had realised if they employed him it'd cost him more in tax than just giving it to him as a gift, and that's what they did. but either way, he was getting two and a half times what i was, for doing nothing, and paying zero tax.

that family had plenty of financial resources available to hand, so i can pretty much guarantee that whatever that guy inherits probably won't be affected by the money he was getting back then.

Flinty997

https://www.boards.ie/discussion/comment/120006889#Comment_120006889

The vast majority of people working on their parents farms or with their parents business get underpaid if they get paid for it at all.

Flinty997

https://www.boards.ie/discussion/comment/120006871#Comment_120006871

Most family grouping or marriages are given preferential treatment as it's seen a benefit to a stable and productive society. Same as supporting people having children etc.

Charles Babbage

https://www.boards.ie/discussion/comment/120006889#Comment_120006889

This is the point. If you hire someone and they work for that money then they have to pay tax, but if you just give it to someone they do not. This is an imbalance.

magicbastarder

https://www.boards.ie/discussion/comment/120007081#Comment_120007081

Yeah, the funny thing is the (admittedly rare!) example I gave is the precise opposite.

but inheritance tax on a family farm is explicitly accounted for, isn't it?

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-reliefs/agricultural-relief/index.aspx

Flinty997

https://www.boards.ie/discussion/comment/120007180#Comment_120007180

Well that would be a gift. Having someone die to avoid paying tax is a mite awkward.

Flinty997

https://www.boards.ie/discussion/comment/120007207#Comment_120007207

For sure. I'm just saying why society does this.

herbalplants

https://www.boards.ie/discussion/comment/120007636#Comment_120007636

In general, the people who voice the loudest that inheritance tax is fair, and should exist are the same people who have nothing to inherit. Perhaps their parents drank all their inheritance. So jealousy is mighty. Plenty of begrudgers.

magicbastarder

i was wondering how long it'd take for the begrudgers line to be trotted out.

Donald Trump

https://www.boards.ie/discussion/comment/120008023#Comment_120008023

People who have a decent amount to leave structure actually things correctly. It tends to be the ones who ended up in the middle by virtue of luck of circumstances who don't bother.

The people who have the decent amounts will know the things I told you above. Or as you thought you might seem smart in saying (although it would veer more towards the opposite end of the spectrum), the "read the manuals".

Flinty997

I wonder how in this thread have planned their inheritance and actually had it written up legally.

Donald Trump

https://www.boards.ie/discussion/comment/120008237#Comment_120008237

People on the thread who are complaining are not actually complaining about what they might be leaving to others. They are complaining about the possibility that they might be taxed on what they receive themselves. They are trying to dress up their "concerns" as the former.

There is nothing wrong with those concerns. It makes it more difficult to reason with them though if they aren't honest about what they are moaning about

NSAman

https://www.boards.ie/discussion/comment/120006283#Comment_120006283

Here’s a novel idea, find savings in the tax spending?

i don’t see it as a rich persons tax at all. Anyone who has worked hard, earned money and paid tax on everything wants to leave their kids something. Many people here seem extremely jealous that others have parents that actually worked hard and saved and have a good relationship with their kids….

Larbre34

https://www.boards.ie/discussion/comment/120006234#Comment_120006234

Yes.

In fact its the best bit of business they can do, nice fat standard variable rate and usually in or around 20 to 25% LTV, when dealing with a single inheritor, so very secure.

Flinty997

My point was very few plan it. Hence the question.

A lot of this thread is people with no experience and thus no insight on why someone might want to look after people on their passing.