Parents will often consider as to whether or not to gift property to the children or let the children inherit on their death. This can be a difficult decision to make and each case should be looked at on its own merits. Clearly the parents will need to retain sufficient assets for their own well being to include payment of Nursing Home fees, home care fees etc. It is an issue that can give rise to a lot of strife within a family and can permanently sunder relationships.
There is also a significant tax issue as to whether a disposal should be made in the lifetime of the parent or on death. A disposition during the lifetime of a parent will give rise to both Capital Acquisition Tax and Capital Gains Tax. A disposition on death will give rise to Capital Acquisition Tax. Furthermore, a parent may have concerns about the ability of a child to manage a large sum of money. This is particularly where the child might be vulnerable or, perhaps, recovering from addiction. It is possible for a parent to gift €3,000.00 each year to a child under the Small Gifts Exemption. If a parent does not wish to transfer any assets during their lifetime it is often a good idea to be upfront and transparent about their eventual plans. To avoid any difficulty after death it is often a good idea to make family members aware as to the contents of a Will and the reasons behind the drafting of the Will.
There are a lot of issues that need to be addressed by anyone in these situations and legal advice should be taken. There has been many fallings out within families as to inheritance and transfer of assets. It has even led to suicide and murders within families. It is a very sensitive issue in Ireland both historically and currently. Therefore, a parent should consider not only tax and legal issues, but also familial relationships and family harmony. If you have a query, please contact firstname.lastname@example.org