Sir, – The recent Government announcement to increase the inheritance tax exemption threshold from €335,000 to €400,000 for children is to be welcomed.
However, once again, we see the clear discrimination against anyone who has failed to produce an heir to their estate. I believe the existing inheritance tax system is outdated, socially undemocratic, unjustifiable and waiting to be challenged legally for its inequality toward childless individuals or couples.
We have witnessed a range of legislation in recent times on individual rights and social justice and the traditional family unit. Yet it is remarkable that if you remain childless your estate upon your death will be taxed significantly more than your fellow citizens who were blessed with children.
Ireland has seen solidarity across the generations in recent years on a wide range of social issues, so this is a matter that should concern all citizens who believe in fair treatment for all.
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If you are childless, whether by choice or not, and wish to leave your estate to your brother or sister, or your niece or nephew, the tax-free threshold is currently just €40,000. Anything above this is taxed at 33 per cent. (The exemption to this is if your relative lives with you and has no residence of their own).
Being childless is, of course, less of a financial burden. But there are much wider considerations. Being childless is seldom a choice or decision made easily by individuals or couples. There are many reasons why people may choose not to become parents, but many, through no fault of their own, are unable to for medical reasons. This is beyond anyone’s control, for both women and men.
Yet if you work hard, pay all your taxes, remain single or childless in this country, you receive little during your lifetime. Then upon your death, your already taxed estate will be taxed at a higher rate than your fellow citizens who have children. This cannot be fair.
You are not permitted to appoint “one person” (without loopholes) to inherit your already taxed property or savings.
In effect, it is a double taxation on single, childless citizens in Ireland.
This issue may possibly have affected a smaller group in the past but that is certainly no longer the case.
A debate on Government inheritance tax is badly needed, especially given that the traditional family dynamics have changed.
I believe this should be an important issue for debate in the next general election.
Fairness and equity need to apply to the inheritance tax system for those who are childless.
We need to hear from all political parties and politicians about their position on this subject. – Yours, etc,
MARIA MURPHY,
Blackrock,
Co Dublin.