Will for 55yo single childless person

[Logo]

I'm posting this for a single 55 year old childless friend who has siblings with offspring who wants to make a tax-efficient will that minimises the amount of CAT due. Revenues 'Category B' (siblings/ nephews/ nieces) seems to apply of €32,500 tax free. My friend has made a will, but is he wasting his time now working full-time (& overtime) and might be better off job-sharing (he has maxed pension limit of best 3 of the last 10 consecutive years). He has assets (properties, earnings, investments, shares etc) that will definitely incur a tax (33% I think) to the benefactors. Is it best for him to gift close friends or can he allow the taxable sum to go to a worthy charity? Thanks in advance.

 

[Easeler]

Is that 55 or 85, 55 seems young to be thinking of giving away his hard earned cash maybe he should discuss this with a non related professional

 

[Logo]

Is that 55 or 85, 55 seems young to be thinking of giving away his hard earned cash maybe he should discuss this with a non related professional

Regardless of age it seems prudent to make plans now for the inevitable future. The will was already drafted by a non related professional.

 

[Easeler]

I'm posting this for a single 55 year old childless friend who has siblings with offspring who wants to make a tax-efficient will that minimises the amount of CAT due. Revenues 'Category B' (siblings/ nephews/ nieces) seems to apply of €32,500 tax free. My friend has made a will, but is he wasting his time now working full-time (& overtime) and might be better off job-sharing (he has maxed pension limit of best 3 of the last 10 consecutive years). He has assets (properties, earnings, investments, shares etc) that will definitely incur a tax (33% I think) to the benefactors. Is it best for him to gift close friends or can he allow the taxable sum to go to a worthy charity? Thanks in advance.

Sorry that bit where you said is it best to gift close friends stood out to me

 

[Logo]

Sorry that bit where you said is it best to gift close friends stood out to me

I see your point but I'm not that close a friend I'm just trying to help him out - and maybe convert him to the very helpful AAM website.

 

[Brendan Burgess]

Hi Logo

His first priority should be to look after himself. From the sound of it, he has enough money to retire on or at least cut back to part-time work. That is what he should do if he does not enjoy his work and if he has other interests to pursue.

Or maybe do a different job?

As regards his nieces and nephews he could give them €3,000 a year gift now to use up the small gifts exemption. That would be €60,000 each over the next twenty years. And the money may well be more useful to them now than in twenty years.

And of course he could leave it all to charity. Or donate some of it now and the charity could claim back tax on it.

He should start by deciding what he wants to do.
And then decide if there are tax-efficient ways of doing it.



Brendan

 

[Gordon Gekko]

His first priority should be his own welfare and ensuring that he has sufficient funds to cover any and all eventualities.

For example, home care might cost €80k a year for someone who doesn't want to be in a nursing home.

Only then should he even consider distributing any notional surplus. Given the current economic environment and property market, being able to help out one's nieces and nephews could be transformational in terms of their lives.

 

[Logo]

Thanks for the feedback. From an early age my friend was conditioned into thinking that the more you worked the better for you - except that being childless wasn't factored. We had a chat and it seems like the thought of home care costs at the ripe young age of 55 are off the table at the moment and - although many would disagree- why should he rule out fatherhood in the future? While he would really like to gift family members €3K each a year (maybe in a trust-fund) - it seems as if he's working towards no future for himself - and simply working for his extended family. It does seem like a bit of a bleak outcome for a hardworking guy