Essential dental work and CAT threshold in will.

[Magillagorilla]

This is a complicated question. Take the case of an adult daughter receiving long-term disability allowance with serious health-impacting dental issues. Implants are required and the parent pays for these as the person does not have the funds and the treatment is essential. Non-routine dental work carries a tax allowance of twenty per cent and the parent claims this. Would the cost of the dental work be regarded as a "gift" in the future, and the CAT threshold be reduced for the daughter as a result? Thank you

 

[cremeegg]

If this is a practical question, there is an annual gift exemption of €3,000, each of 2 parents and any others can gift that with no tax implications.

 

[Adelie]

I don’t know if this applies to your situation but there is an exception for supporting your child of any age if they are “unable to maintain themselves due to a permanent physical or mental disability”

Exemption for support, maintenance and education payments

Income or gains that are exempt from CAT

www.revenue.ie

And another for medical expenses “If you are permanently incapacitated because of physical or mental infirmity”

Exemption relating to qualifying expenses of incapacitated individuals

This page explains income or gains that are exempt from CAT

www.revenue.ie

 

[Steven Barrett]

This is a complicated question. Take the case of an adult daughter receiving long-term disability allowance with serious health-impacting dental issues. Implants are required and the parent pays for these as the person does not have the funds and the treatment is essential. Non-routine dental work carries a tax allowance of twenty per cent and the parent claims this. Would the cost of the dental work be regarded as a "gift" in the future, and the CAT threshold be reduced for the daughter as a result? Thank you

No it doesn't.

The Revenue aren't on the hunt for people paying for their children's dental work. They are looking at the systematic transfer of wealth from one generation to another without declaring it for CAT.