Your personal financial questions – Can I avoid burdens when taking out health insurance later?
QI will be 65 next year and have been living in Ireland for four years but do not have health insurance yet. I keep procrastinating because of the costs and penalties of joining older members. I was in the UK. What do you recommend for an affordable policy?
A According to TotalHealthCover.ie’s Dermot Goode, there is no escaping the pressures of aging. At 64, you have a 30-year burden.
That adds 60 percent to the gross cost of any plan you join, the health insurance expert said. Plus, every charge stays with you for the next 10 years. They must also comply with the standard waiting times applicable to all new members, including the five-year limitation on existing medical conditions, Mr Goode said.
If you really want to get health insurance, he recommends you consider some mid-level plans. He suggests considering plans like the Laya Signify program; the VHI Enhanced Care 250 or the Irish Life Health Benefit Access 300.
Each of these costs between €860 and €974, and that excludes age supplements. The outlined plans cover all public and private hospitals. You have to remember that each year you stay out of the system, the exposure increases to the maximum level of 70 percent, Mr Goode said.
Q My husband and I own an inherited house that has been used as a vacation home for the last 50 years. It has served us well but we now want to gift it to our son. What are the tax implications? According to a local real estate agent, it is estimated at around 300,000 euros.
A There are unlikely to be any major tax implications for your son other than Local Property Tax (LPT), according to Taxback.com Excise Tax Manager Marian Ryan.
Your son will have to pay for the property and all taxes on rental income if he rents the property. Your son can inherit the holiday home from you tax-free, Mr Ryan said.
Provided he has not received any other gifts of significant value from you in the course of his life. Because according to the inheritance tax regulations, your son can inherit up to €335,000 tax-free from you and his father during his lifetime. Since the value of the holiday home is currently €300,000, this property alone does not trigger a tax bill for him.
Ms Ryan said you should also remember that the small gift exception allows anyone to receive a gift up to a value of €3,000 from anyone in any calendar year without having to pay tax on the gift. Under the inheritance tax regime, it makes no difference to your son whether you leave the estate to him after your death or during your lifetime, although the value of the estate can play a role.
If you pass on the property while you and your husband are still alive, you could both face a significant capital gains tax bill
However, it’s worth noting that if you pass on the property while you and your husband are still alive, you could both face a significant Capital Gains Tax (CGT) bill on that property.
As this property is a holiday home that you inherited some 50 years ago, its value has likely increased significantly since you first inherited it and much of this gain is taxable.
However, if you wait until you die before handing over the vacation home, no capital gains tax bill will be raised for you or your estate, Ms Ryan explained.
Q I have a health insurance policy with VHI called Health Plus Access. I am a regular visitor to the Oncology Day Unit at St. Vincent Private Hospital. I find this policy expensive. Can you recommend a cheaper policy with no excess that suits my needs?
A Before making any changes, Mr. Goode suggests that you contact VHI.
He said this is important as you should be covered for outpatient treatment at this private hospital with no deductible to pay under the current plan. If you are insured with VHI Health Plus Excess or Health Access, you must pay a deductible for any outpatient procedure.
You also need to be careful when making changes to coverage as you are currently in treatment
Mr Goode said you also need to be careful when making changes to coverage as you are currently under treatment.
This means you need to ensure that all procedures, advisors and scans are in place is covered by an alternate plan.
Other lower cost plans with no deductible that might be worth considering are the VHI Company Plan Extra Level 1 for €1,760 per year; Irish Life Health 4D Health 5 for €1,823; and Laya 360 Care for €1,972 per adult, Mr Goode said.
https://www.independent.ie/business/personal-finance/your-personal-finance-questions-can-i-avoid-loadings-when-taking-out-health-insurance-later-in-life-42192157.html Your personal financial questions – Can I avoid burdens when taking out health insurance later?
