NoRegretsCoyote
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Parents: mid 60s, reasonable health
Income: two good DB pensions, probably a net €7k a month income together. Spending less than income by €1k-€2k a month.
Assets: PPR (€500-€600k), cash deposits (€200k-€300k), no debts
As you can tell they are a bit coy about how much is in the bank but I know it's at least €200k. I'm an only child and sole beneficiary of the will, my lifetime CGT allowance completely intact. If their combined estate is €800k then there's a CAT liability on €465k, so at 33% that's €150k or so.
It makes sense I think for them to use some of their cash wealth to buy a section 72 policy to cover my likely CAT bill when the time comes. As I understand it they would pay a premium until both are deceased and the covered amount would accrue to me tax free.
In terms of downside potentially the Fair Deal and/or nursing care at home could eat into house and savings limiting my CAT exposure a lot. On the other hand in 15-20 years the house could be worth a lot more and as they age I would think their spending will only decline relative to two very good pensions. So my CAT exposure could get even higher.
I have no idea about such policies and where to take one out. Is there an age cut-off? Is there much by way of medical tests? Any insights appreciated - thank you!
Income: two good DB pensions, probably a net €7k a month income together. Spending less than income by €1k-€2k a month.
Assets: PPR (€500-€600k), cash deposits (€200k-€300k), no debts
As you can tell they are a bit coy about how much is in the bank but I know it's at least €200k. I'm an only child and sole beneficiary of the will, my lifetime CGT allowance completely intact. If their combined estate is €800k then there's a CAT liability on €465k, so at 33% that's €150k or so.
It makes sense I think for them to use some of their cash wealth to buy a section 72 policy to cover my likely CAT bill when the time comes. As I understand it they would pay a premium until both are deceased and the covered amount would accrue to me tax free.
In terms of downside potentially the Fair Deal and/or nursing care at home could eat into house and savings limiting my CAT exposure a lot. On the other hand in 15-20 years the house could be worth a lot more and as they age I would think their spending will only decline relative to two very good pensions. So my CAT exposure could get even higher.
I have no idea about such policies and where to take one out. Is there an age cut-off? Is there much by way of medical tests? Any insights appreciated - thank you!