whattodonext
Registered User
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- 4
We are concerned about where to leave our savings due to bank guarantee limits.
Homecare would be very expensive. But you would probably get better medical care in a nursing home.
How much more expensive would homecare be?
- Does your current income cover all of your living expenses or do you supplement it from your savings?
- What will happen to your pension if you predecease your spouse? Will your spouse only have €7k to live on or will they continue to get something from your occupational pension?
- Do you and your spouse already have very clear and concise wills made?
- Are there home improvements/adaptions that you may need to make to your home such as wetrooms, accessibility etc?
- Do you foresee any large medical bills or surgeries that you may need to pay for?
You can give each of your children €335k and each of your grandchildren €32,500 without there being any tax liability.
If your children need money , then lend it to them. Then they can give it back to you if you need it.
Can I also give to my son-in-law/daughter-in-law above the €3k gift pa without there being a tax liability?
I think we would find it very hard to lend it to them as if I gave them such a substantial sum they would be using it to pay off mortgage etc so would not be available to pay us back. At the same time we don't feel we need to wait until we pass away to give them some of their inheritance. We are not being pressurised into this. Having worked all my life the challenge we have is trying to get a handle on how much we should keep.
Should an 82 and 81 year old be investing in the stock market? I think at this stage in a person's life people are trying to offload money than accumulate it.When you decide how much you need to keep, then invest it directly in a diversified portfolio of shares.
While the values will go up and down over the next 10 or 15 years, they are more likely to go up and your portfolio will probably be worth more when you die.
I would have to respectfully disagree and say that is a poorly balanced portfolio. As @whattodonext has said, lending that amount of money would likely be used for large capital expenditure so they would not get it back anytime soon. It would get a whole lot worse if some get it and others don't and how that eventually plays out with wills if the people in receipt of the loans are not in the will. I would stick to gifting money that you are comfortable you do not need and keep the restFamily home: €350k
Loans to family members: €350k
investments in shares: €200k
That is a well balanced portfolio.
Lots of great answers here. You have looked after your immediate needs by proactively upgrading your home and you will enjoy the benefits of this with increased comfort in the years to comeFirstly - Thank you so much for your replies so far. Now to answer some of your questions.
Our current income covers all our living expenses. Our savings are roughly increasing by €2k pa
I'm a retired civil servant. To the best of my knowledge my wife would receive half of my pension for as long as she lives, along with her own pension and presumably a Widows pension. Potentially €19k pa.
Yes very straight forward split between our two children.
We have just finished a complete refurbishment of the house to ensure we can continue to live there. We've now got a downstairs bedroom, proper insulation, windows, heating/security system, along with a very accessible bathroom. It has been a breath of fresh air for us - especially with lockdown.
Nothing impending and fingers crossed it stays that way.
Recipient | From You | From Your Spouse | Total (per year) |
Child A | €3k | €3k | €6k |
Child A spouse | €3k | €3k | €6k |
Child B | €3k | €3k | €6k |
Child B spouse | €3k | €3k | €6k |
Grandchild A | €3k | €3k | €6k |
Grandchild A partner | €3k | €3k | €6k |
Grandchild B | €3k | €3k | €6k |
Grandchild B partner | €3k | €3k | €6k |
Kudos for being young enough to post on a message board, and quote replies! You are the oldest person I know of to do that.
might I suggest a charitable contribution.
One question for the OP. You refurbished the downstairs of your current home rather than move to a bungalow or similar. We are debating this at the moment ourselves, can you give us some reasons to stay put or otherwise?
So only €100k would be subject to CAT.
I would have to respectfully disagree and say that is a poorly balanced portfolio. As @whattodonext has said, lending that amount of money would likely be used for large capital expenditure so they would not get it back anytime soon. It would get a whole lot worse if some get it and others don't and how that eventually plays out with wills if the people in receipt of the loans are not in the will. I would stick to gifting money that you are comfortable you do not need and keep the rest
As for investing, again I would say the OP's need for access to money far outweighs their need for 10yr growth. If they loaned €350k and invested €200k, then all of that money is locked away for at least 5 years. I think that would be a terrible use of their wealth.
If your children need money , then lend it to them. Then they can give it back to you if you need it.
Likewise, a good use of your money would be to lend it to your grandchildren to help them buy homes.
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