that the full tax will due to be paid by the children on the event of the parents death. This could be a sizable amount if the elderly parent lives for hopefully 20 years or more.
Do you know for sure the contents of your mothers will or are you assuming that all five will inherit an equal share of the estate?
This could amount to a sizeable amount after 20 years but will still
be less than the value of the estate unless your mother has other debt that you don't know about
Exactly - and what if we dont want to sell the house - is there a plan for debt repayments or is it owable immediately with the execution of the will?Will the tax be taken first from the sale proceeds of the home by the executor and paid to the revenue before the balance is distributed?
Just to try to bring some perspective to this - take a house worth 400k, assume LPT at 0.18% p.a. plus 4% interest, for 20 years (ignoring inflation or any change in value) - this results in a liability of just over 22k. God forbid my Dad died in the morning and left me €400k worth of house after him not paying LPT for 20 years, I think I'd be willing to deal with that tax consequence.
This is a post taken from another thread that may go some way to allaying your fears over deferral cost build up
Considering house prices are considered low right now, and given that the media has been indicating since pre HC that the tax will go up after the first few years - that post is likely to be showing a very optimistic underestimation of events.
Exactly - and what if we dont want to sell the house - is there a plan for debt repayments or is it owable immediately with the execution of the will?
Considering house prices are considered low right now, and given that the media has been indicating since pre HC that the tax will go up after the first few years - that post is likely to be showing a very optimistic underestimation of events.
All guesswork/speculation i suppose as regards property and LPT price increases, but as long as the LPT % increases are kept level/below property price rises then surely the beneficiaries aren't going to be any worse off than in the example quoted
up to and including a valuable property attracting a relatively high tax and then going on fire and being worth very little when it comes to sale.
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