Part 7: How do we pass on wealth without paying more tax than necessary?

Today we embark on question seven of the ten things you should be asking yourself right now about your future in retirement: “How do we pass on wealth without paying more tax than necessary?”. It’s important to remember that retirement isn’t an ending. It’s a phase of your life that could last many years, and you need to be financially prepared for it.

Nothing certain but death and taxes

 
You can’t take it with you. True enough, but you can leave it behind. The wealth you’ve worked so hard for could change the lives of the next generation for the better. But you need to be sure it doesn’t change your own for the worse.
 
If we’re talking about ‘small’ gifts, up to €3,000 per year, then that’s generally easy to deal with, there’s no Capital Acquisitions Tax to worry about. Once we get up to the big numbers though, more than €335,000, then Capital Acquisitions Tax applies and your family members could be staring down the barrel of 33%.
 
If your Metis LifePlan shows that you’ll have wealth remaining after you’ve lived the life you want, then estate planning is really important. The last thing you want is for your family to shell out over and above what they should be paying.
 
 

Leaving it all behind

 
The other side of this question is to keep in mind how the idea of leaving money behind works with your plan and the lifestyle you want to achieve. There’s no point in scything off chunks of wealth with no regard for how it’ll affect you in the years ahead. Lifetime cashflow modelling will help you to understand what you could realistically leave behind, once you’ve enjoyed the retirement and lifestyle that you’ve worked so hard to enjoy.
 
Your Metis LifePlan gives you a structure for all of your estate planning needs and, when the time comes, we’ll work with your solicitors and tax advisers to make sure your family is provided for. We’ll help you to understand the best way to pass on your wealth, whether that’s in instalments or by putting the money into a trust. If you’re in the financial position of needing to plan for a multi-generational legacy, then we’ll be able to help you find the right structure to protect what you’ve achieved long into the future.
 
 
In our next instalment, we ask “How should we prepare for the worst?”
 
If you simply can’t wait and want to read all about it right now, you can sign up to download the guide in full here.
 
 

Talk to us

 
We’d love to help. Whether you’re just beginning to think about retirement, your plan is already under way, or it’s finally time to stop putting it off.

Call us for an introductory chat and we’ll see where you’re up to. If you like what you hear, we can meet and go through your vision for retirement as you see it.

It’s free and you don’t need to come with a plan. That’s what we’re here for.