It is becoming more of an issue because wealth for many is in their house and the relatives see €€€€ when they die.
Even 40 years ago houses were not valued that much compared to income so most felt inheriting an old house from a relative was a bit of a headache. Many in the countryside just fell into disuse. But nowadays they keep going up in value and for those who inherits them it can have a life changing impact on their lives.
Families are getting smaller. So a €500K house sold and split between 5 siblings was a small wave, helping pay down a mortgage or similar, but when the current young adult inherit it will be 1 or 2 siblings so they inherit a greater amount and it will generate a greater wave in their lives.
And people are living longer, and non familial bonds develop and grow. Nieces and nephews do spend many years helping care for older aunts and uncles, checking on them, meals, hospital appointments, the whole 9 yards. In most cases a relative steps into help. And if they inherit why are they penalised 33% on a house inheritance compared to if they were a child.
Plus many countries have no inheritance tax. I think revenue say not many people are impacted by inheritance tax in Ireland in any given year, so is it a big deal?
And I would think some parents would like to give a greater tax free inheritance to grandchildren than children. If people are living into their 80’s on average the children are in their 50’s and 60’s and are probably well established in their own houses and careers whereas their kids in their 20’s and 30’s may find a tax free inheritance just what they need for education, housing, family needs.
There is the favoured nephew/niece scheme in agriculture, but other than that no indication that family now is very different from family in the past.
Even 40 years ago houses were not valued that much compared to income so most felt inheriting an old house from a relative was a bit of a headache. Many in the countryside just fell into disuse. But nowadays they keep going up in value and for those who inherits them it can have a life changing impact on their lives.
Families are getting smaller. So a €500K house sold and split between 5 siblings was a small wave, helping pay down a mortgage or similar, but when the current young adult inherit it will be 1 or 2 siblings so they inherit a greater amount and it will generate a greater wave in their lives.
And people are living longer, and non familial bonds develop and grow. Nieces and nephews do spend many years helping care for older aunts and uncles, checking on them, meals, hospital appointments, the whole 9 yards. In most cases a relative steps into help. And if they inherit why are they penalised 33% on a house inheritance compared to if they were a child.
Plus many countries have no inheritance tax. I think revenue say not many people are impacted by inheritance tax in Ireland in any given year, so is it a big deal?
And I would think some parents would like to give a greater tax free inheritance to grandchildren than children. If people are living into their 80’s on average the children are in their 50’s and 60’s and are probably well established in their own houses and careers whereas their kids in their 20’s and 30’s may find a tax free inheritance just what they need for education, housing, family needs.
There is the favoured nephew/niece scheme in agriculture, but other than that no indication that family now is very different from family in the past.