Inheritance Redress Scheme for Unmarried Cohabiting Couples

by | Feb 19, 2018 | Wills & Probate

Inheritance-Redress-Scheme-Cohabiting-Couples-Inheritance-Law

Did you know however that only married couples or registered civil partners are exempt from inheritance tax under current tax laws?

Increasingly as a society couples live together and either postpone or choose not to marry. However, if you are in a cohabiting relationship and you die without making a will, your partner has no right to any share of your estate irrespective of how long you have been together (apart from what was held jointly such as joint bank accounts, joint property etc.). Your partner if you are living together is not your next of kin to whom it falls to extract a Grant of Administration if you die without a will. There is however an Inheritance Redress Scheme for cohabitating couples. A qualified cohabitant may apply for provision to be made from the estate of the deceased cohabitant. Any gift or inheritances taken by a qualifying cohabitant are exempt from Capital Acquisitions Tax if they are made pursuant to a court order made in accordance with an application under the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010. This Act is quite a mouthful but is a milestone in Irish law in extending the categories of relationship to whom the law will afford protection. It is a complicated area of law however and does require specific and expert legal advice in the event that you are dealing with the death of a partner or loved one and in need of legal assistance.

(Our private law team at Carmody Moran Solicitors are experts in probate and family law and are expertly placed to assist and guide you through a probate in such an instance and whether or not your circumstances merit applying for recourse under the redress scheme.)

In brief, in reviewing such an application the court will consider certain factors including:

  • The financial circumstances of the parties.
  • The rights and entitlements of any spouse or former spouse, civil partner or former civil partner.
  • The existence of any children.
  • The duration of the parties’ relationship.
  • The contributions made by each cohabitant including contributions made in looking after the home.
  • The effect of the earning capacity of each cohabitant or the responsibilities assumed by them during the period they lived together.
  • The conduct of the parties where it would be unjust to disregard it.

Inheritance Tax for ‘Strangers’

It is noteworthy that if you find yourself in a situation where your partner has died and you are uncertain as to next steps, if you do not qualify under the redress scheme, then you will be treated as strangers for CAT purposes from your partner in terms of your inheritance. The current CAT threshold for strangers is €16,250 (presuming you can access the full threshold and have not ‘spent’ it previously). Anything above that threshold will be taxed at 33%. This situation differs radically to the relief available to married couples where gifts or inheritances between you would be exempt from CAT. Also the surviving spouse possesses a unique importance because of the provisions of the Succession Act 1965 whereby a spouse can make claim to a legal right share. In a recent blog post we wrote about the certainties of death and taxes and wills and disputes. Death is the one milestone in life that we can all be assured of reaching. Glum reading I know! Putting together a plan however or even taking the simple step of writing a will can protect your family greatly in the future. In essence the moral of the story is that it is important that you draw up a will to ensure that your wishes are met on your death and furthermore to take advice to safeguard joint or intended joint assets on death if you are not married.

To arrange a preliminary consultation with our family law solicitors, phone us on (01)8272888 or use our contact form here.

INDEPENDENT GOOGLE CLIENT REVIEWS

Sergey Sk
Sergey Sk
1695240410
I was looking for a family law consultation and asked Carmody Moran for one. Unfortunately, they didn't have the capacity, but at least they were nice enough to call me back and reply by email.So the very least you can expect from these specialists is the right attitude (unlike from many others out there on the market), but likely a lot more!
Madeleine N
Madeleine N
1694685129
We recently engaged Carmody Moran Solicitors for the purchase of our home, on receiving a recommendation for Caila Ryan specifically. Caila and the team were a pleasure to deal with. Caila was incredibly responsive, efficient and diligent throughout the process. As first time buyers, Caila explained all steps clearly and concisely to us, which eased our stress. Caila and the team went above and beyond for us - and accommodated ad hoc meetings when required. We highly recommend Caila and the team at Carmody Moran.
Aditya Labhe
Aditya Labhe
1694624301
Caila was nothing but helpful throughout the process of me buying a new apartment. She is diligent, helpful and has great attention to detail. She was patient with me with all the questions and ensured the process was as through as possible from all the legalities stand point. A true champion for her clients. I have no hesitation recommending her.
Jodie Osullivan
Jodie Osullivan
1693827563
I had an absolutely fantastic experience with my solicitor! Their hard work and dedication were truly impressive. They went above and beyond to help me with my legal matters. I couldn't have asked for a better advocate. Highly recommended!
Very professional experienced solicitors and legal team in Blanchardstown Dublin 15. Anthony Carmody and Niamh Moran run a friendly and efficient practice, supported by a great legal practice team. From commercial to property law, both residential or commercial Conveyancing in Dublin to Estate Planning or Litigation and Family Law, this legal firm ranks as one of the best legal firms in the area. I found Anthony to be very astute and knowledgeable in our discussions about Litigation. His legal advice made me rethink my actions and helped me settle an issue without any unnecessary actions or outlays.
I recently engaged with Carmody Moran Solicitors for the purchase of my new home. Caila and team were incredibly helpful throughout the whole process, ensuring I was kept up to date and promptly responded to any queries I had raised. I was particularly impressed at how diligent and efficient Caila was in ensuring the purchase went as smooth as possible. Would highly recommend them for their Legal services.
Aedamar O'Toole
Aedamar O'Toole
1683694350
Carmody Moran Solicitors exceeded all expectations as a Solicitor. Caila was an absolute pleasure to deal with from start to finish. She is exceptionally professional, organised and responsive. We needed her service in buying a house. She made sure that we were in the best position to make the transaction and was extremely thorough and intelligent in her work. She helped us secure the house before another interest rate hike. She went above and beyond as a solicitor and I couldn’t recommend her enough!
Louise O'Dwyer
Louise O'Dwyer
1682673711
I recently had the pleasure of engaging Carmody Moran Solicitors for the purchase of my new home. I found Caila and the team to be extremely professional, efficient and they kept the whole process moving along smoothly at all times. Everything was explained to me at each stage in the process in a clear and concise manner. I would highly recommend Carmody Moran Solicitors to anyone for quality legal services.
Luke Ivers
Luke Ivers
1682431670
Caila at carmody Moran is an absolute pleasure to deal with. Always attentive and always keeping you update. Caila took a lot of the stress out of the leg work having everything ready and constantly in contact with us. Would recommend Carmody Moran to anyone. They're all lovely to deal with and so helpful.
John Corr
John Corr
1681890399
We recently engaged with Carmody Moran Solicitors for a property purchase. From start to finish I found their service to be highly efficient and accommodating at all times . Caila in their office was very pleasant to deal with . I would highly recommend them to anyone in the future.
Laura Butler
Laura Butler
1680770430
Absolutely fantastic, I would highly recommend. Prompt responses, clear and helpful communication, very diligent, and absolutely lovely to deal with. Caila is a star. Even my estate agent was full of praise!
Aileen Power
Aileen Power
1678466164
Carmody Moran recently helped me with the sale of my home. Niamh, Caila and all the team were fantastic to deal with from start to finish. They explained everything so clearly, were extremely professional, efficient and always responded promptly. On top of that they were just such a friendly group of people to deal with. I would highly recommend them.
The client service was really great. Understanding, easy to deal with and reactive
Joe Marsh
Joe Marsh
1664215159
We recently closed on a first time house purchase and we were very pleased with how the whole process was handled at Carmody Moran. They always responded clearly and promptly to the many queries I had along the way and were on the ball with following up issues with the sellers solicitors to keep the process moving.The reason I went with them originally over other options was because they gave a very clear breakdown for the charges and the quoted price we were given was transparent and easy to understand compared to other quotes I received.I will definitely use them again if the need arises and recommend them to my friends and family.
Kenneth Ohaa
Kenneth Ohaa
1662025947
I got the keys to my new house a few weeks back. I cannot recommend Carmody Moran Solicitors highly enough. It was a bit lengthy as I was buying and selling at the same time. In such cases you need experienced and competent solicitors such as Carmody Moran Solicitors.Stephanie and Helen were a pleasure to work with. Very transparent and communicative. Also occasionally dealt with Lucy and Caila. They were brilliant as well.I would like to say Thank you to the entire Carmody Moran team.Kenneth
Salt Almighty
Salt Almighty
1660112195
I needed a solicitor to arrange a mortgage, and they went above and beyond to help me !I would advise them to anyone
Andrew Grime
Andrew Grime
1656963543
My partner and I recently made the acquisition of our first home and it was a lengthy and difficult process, due to the fact we were buying from a receiver.In such difficult cases, you will need a legal representation as competent and professional as Carmody Moran Solicitors on your side.We were primarily dealing with Stephanie who gave us regular updates, helped us understand what is happening and what to do. We felt our interest always came first which made every appointment with her something we looked forward to.We were also occasionally in contact with Lucy, Niamh and other brilliant members of the firm, all of whom provided an excellent level of support and knowledge in Stephanie's absence.I couldn't recommend Carmody Moran enough. I would like to give a heartfelt thank-you on behalf of myself and my partner to every one involved at the firm who helped us make our dream a reality. We will not hesitate to call upon your services again should the occasion arise.Andrew.
jonathan
jonathan
1656432861
I would highly recommend Carmody Moran Solicitors. Niamh Moran and her team helped and supported me through the sale of my home. The transaction was dealt with efficiently and quickly. Every step was clearly explained from the Sale Questionnaire, Contract for Sale to Completion.
We just got the keys to our dream home 🏡 special thanks to Stephanie,Helen,Caila and Carmody Moran team.All the girls are very friendly and helpful.Stephanie was a pleasure to have you as our solicitor.Highly recommend!
We've just got the keys to our dream home and Carmody Moran has helped us with all the legal work. We've been dealing with Stephanie and Helen and they both have been great: friendly, professional and communicative. The whole process can be intimidating at times, but they've made sure to make it as easy as possible for us. They've represented us well. Highly recommended.
ciara daly
ciara daly
1645201655
Anthony and his team went above and beyond for me, everything was always looked after and I was constantly kept in the loop for my RTA case. From phone calls to emails to dealing with insurers. Gave me great peace of mind that I chose the right solicitor and Anthony himself is a gentleman. I would highly recommend Carmody Moran Solicitors.
Next Reviewsjs_loader
Law-Society-of-Ireland
Finalist-Logo
Membership-Logo
APIL-Logo
National-Solicitors-Alliance-Logo