Thank you. We use the 120 - combination of shares/investments as a savings pot as the mortgage is quite low. We don't want to have v little left with only 30k and have other expenses upcoming.You have €120k in shares, a €90k mortgage, and a requirement to spend €20k on something.
Clear the mortgage immediately by selling the shares and use the balance, less tax, to fund the project.
Then focus on pension funding.
It’s crazy to invest in shares unless your mortgage is cleared and you’re maxing out your pension.
No. Stand on your own two feet.should I ask for part of an inheritance now when we have a lot of expenses.
what 30k and other expenses? Is this on top of the 20k house repairs?Thank you. We use the 120 - combination of shares/investments as a savings pot as the mortgage is quite low. We don't want to have v little left with only 30k and have other expenses upcoming.
This makes zero sense.Thank you. We use the 120 - combination of shares/investments as a savings pot as the mortgage is quite low. We don't want to have v little left with only 30k and have other expenses upcoming.
Thank youSpeaking as a grandparent/father, Joe-Soap and a person who went through the mill for most of my life working hard, paying income tax and all the other taxes, USC, fees, property-tax, etc without question since I first started working and I get approached by one of our family asking for some early "inheritance." I'll be honest and say "Yes" to any request for money-in-advance-of-our-passing. In fact, I'd be quite relieved at such a request, not that I have millions (I haven't). But, I would wish to contribute to my grandchildrens welfare mainly.
The tax implications don't bother me. We've paid tax on everything we've earned and I see no reason why any sort of liability should be transferred to our offspring. You can draw your own conclusions on this.
Thank you. We will look at reducing expenses somewhat and def get the 17 yr old to get a summer job. The kids are heavily involved in extra curricular activities (which impacts costs) but there is time over the summer.Most gift givers would prefer to see their generosity being enjoyed or having a benefit during their lifetime. Especially for something like school fees, where the alternative is for children to either leave a chosen school or not to be able to go at all.
However it is fraught with difficulty in terms of siblings, leaving your parents potentially short of funds to pay for care etc. But only you will know your own family circumstances eg if you are an only child and it is clear that you will inherit the whole estate etc.
How do you propose to fund the college expenses of the older kids, as that is coming soon? It should be cheaper than the school fees if they can live at home but have you done out a projected cash flow for the next few years?
Thank you. I think I phrased the question poorly. It is really just to help with school fees and some additional extras - eldest 3 currently have braces.Is the main income earner self employed? I understand the feeling of having the cushion given your family situation. Do you have life insurance covering the main earner?
I wouldn't be in a rush to clear the mortgage with the 120k, neither would I have the money invested in shares. This is not a long term investment. If anything, I would prepay the school fees (can you get a discount if you do this?).
First things first, what is your income - expenses? How long will the 120k last if your expenses are greater than your income? Secondly, I would reevaluate the intention to put 5 kids through private school? Is this necessary/realistically feasible? Will your oldest be going to university, there may be scope for them to take on a job in the future to help out (particularly if you are dead set on private school for the others)? If so, I wouldn't assume any meaningful drop in financial support as they go on to third level.
As regards the inheritance, I would potentially broach it as more a request to help out with school fees rather than an inheritance. Perhaps it could be structured in such away as to be gifted to the children (€32k threshold for each grandchild) and any inheritance down the line would be for you - given your low pension coverage. When you say you "mind" your parent, perhaps there would be some recognition that you cannot work as much as you would like, as a result? Are their siblings in the picture, which could create complications? And even if you got the inheritance, if your expenses are not in check, it would quickly be whittled away.
If the grandparent gifted yourself, your husband and your five children €3k each (€21k in total) every year, each such gift would fall under the small gift exemption and would have zero tax consequences.My question is - should I ask for part of an inheritance now when we have a lot of expenses. My parent would be very willing to do this but what are the tax implications?
Thank youCaring for your relative will also potentially reduce their need for external care and possibly nursing home care. That is a wonderful thing if you are able to do so, and by doing this it is a side effect that you are potentially leaving the estate with more wealth.
Imagine the hourly rate that would be paid to do what you do to the level that you do (I imagine you are on call at night, over weekends, during bad weather, bring them to appointments using your own car etc). And also the income you are not earning due to your caring responsibilities. Unfortunately this care can be hard to quantify, so hopefully any other potential beneficiaries can see this in view of any early inheritance you might receive.
And if the grandparent is committed to the kids' private education, it wouldn't be that unusual for a grandparents to help out woth school fees.If the grandparent gifted yourself, your husband and your five children €3k each (€21k in total) every year, each such gift would fall under the small gift exemption and would have zero tax consequences.
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