Ireland’s Property Tax Playbook: Buying & Selling In 2023

Ireland’s Property Tax Playbook: Buying & Selling In 2023

Introduction

If you’re thinking about buying or selling a home in Ireland, it’s essential to know about the property taxes you might face. Ireland’s way of taxing properties can be different from other places like the UK or other European countries.

 

In Ireland, the group in charge of taxes is called the Revenue Commissioners. In this guide, we’ll explain the main taxes you need to know about and how they work.

 

For instance, there’s a yearly property tax in Ireland that homeowners pay based on the current value of their house. This tax helps pay for local things we all use like roads, parks, and libraries.

 

We know taxes can be a bit confusing, especially when you’re buying or selling a property. That’s why it’s always a good idea to get some professional advice. This guide aims to give you a clear and simple overview of what to expect. Let’s get started!

Buying Property In Ireland

Understanding Stamp Duty In Ireland

Stamp duty is a significant consideration for potential homeowners and investors in Ireland. Essentially, it is a tax imposed by Revenue when transferring ownership of property. Whether you’re purchasing your first home or investing in a commercial venture, understanding how stamp duty works is crucial.

Purpose And Payment:

Stamp duty serves as a tax on the transfer of assets, particularly property. The proceeds are used for various public services and developments.

 

When purchasing a property, the responsibility of arranging the payment to Revenue usually falls on your solicitor. They will handle the calculations, make the required payments, and ensure that the property deeds are duly stamped with your name as the new owner.

Types Of Properties Affected:

Stamp duty applies to various types of properties, both residential (like houses, apartments, or land for building) and non-residential (like commercial buildings or plots). The rate and amount you’ll need to pay differ based on the type and value of the property.

Not every property transaction attracts stamp duty... | Kevin O'Higgins Solicitors

Stamp Duty Rates In Ireland

Understanding the rates can help you better budget for this added expense. Rates vary depending on the type of property and its cost.

Residential Property:

For homes priced up to €1 million, a rate of 1% is applicable. If the property’s value exceeds €1 million, a 2% rate applies to the excess amount. For instance, a house priced at €300,000 would have a stamp duty of €3,000.

 

New builds come with a slight variation. The stamp duty is calculated on the value of the home minus the current VAT (13.5%). So, if a new home costs €300,000, after deducting the VAT, the stamp duty would amount to €2,595.

Non-Residential Property:

For commercial properties or land, a flat rate of 7.5% is charged. However, there’s a possibility of obtaining a refund under the stamp duty residential development scheme if the land, initially bought as non-residential, is developed for residential purposes.

Multiple Properties:

Property moguls should take note of a significant change introduced in July 2021. If a buyer acquires 10 or more properties within a year, a heightened stamp duty rate of 10% is levied on the total value of these properties.

Stamp Duty Exemptions And Special Cases

It’s worth noting that not every property transaction attracts stamp duty. There are exemptions and specific cases that can affect the amount payable.

Local Authority Tenant Purchase Scheme:

Purchasers under this scheme enjoy a capped stamp duty of just €100.

Transfers Between Spouses And Partners:

In certain circumstances, property transfers between spouses or civil partners may be exempt from stamp duty.

VAT Considerations:

If you’ve paid VAT on your residential property, your stamp duty is computed on the pre-VAT price. This can lead to substantial savings, especially for new builds.

Inherited And Gifted Properties:

While inherited properties are exempt from stamp duty, those gifted do attract this tax.

Second Property:

The acquisition of a second or subsequent home doesn’t exempt you from stamp duty. Each property purchase in Ireland is subject to this tax.

Quick Summary

By thoroughly understanding these nuances of stamp duty, you can navigate the Irish property market more effectively and avoid unexpected financial hiccups.

 

Always consult with a legal or financial expert when considering a property purchase to ensure you’re fully informed. 

The amount of Local Property Tax is primarily based on the valuation of your property | Kevin O'Higgins Solicitors

Navigating Local Property Tax In Ireland

Local Property Tax (LPT) in Ireland applies to residential properties.

The key date to remember is November 1st, which is used as the reference date to determine if a property is liable for LPT.

 

For example, if a property is residential on 1 November, it will typically be liable for LPT.

 

Interestingly, some previously exempt properties, particularly those built after 2013, became liable from 2022 onwards.

 

If you have a property that hasn’t been registered with the Revenue Commissioners for either LPT or stamp duty before, it’s essential to ensure registration.

Property Tax Rates And Amounts For 2023

While the rates for 2023 are subject to periodic review and changes, the core principle remains that the amount of Local Property Tax you owe is primarily based on the valuation of your property.

 

​​The Revenue website also has a useful online LPT calculator that calculates the Local Property Tax of a property up to and including the local adjustment factor.

 

If you’ve claimed any LPT deferrals in 2022, it’s crucial to ensure they carry forward to 2023 if you still meet the requirements.

Addressing Common Concerns

1 – Can I defer my LPT payment?

 

Yes, in certain conditions, deferring some or all of your LPT is possible. Known as a “deferral”, you might qualify if:

 

  • Your income falls below a particular threshold.
  • You represent a deceased person who had LPT obligations.
  • You’re under a Debt Settlement or Personal Insolvency Arrangement.
  • Immediate payment would cause undue financial hardship.

 

However, it’s essential to remember that a deferral doesn’t mean an exemption. Interest accrues on the deferred amount, and it remains a charge on the property.

 

For those who qualify for a partial deferral, they can defer up to 50% of the LPT, paying the remainder.

 

Income-based deferral:

 

If the property is your residence and your income is below certain thresholds, you might qualify for a full or partial deferral.

 

These thresholds vary based on whether you’re single or a couple and if you have a mortgage taken out before 1 November 2020. For instance:

 

  • Single individuals without a mortgage must have a gross income not exceeding €18,000 for full deferral or €30,000 for partial (50%) deferral.
  • Couples with a mortgage can increase their income threshold by 80% of their gross mortgage interest.

 

It’s worth noting that ‘gross income’ includes income before any deductions, allowances, or reliefs, encompassing income exempt from income tax and from Department of Social Protection (DSP) payments.

 

2 – Are any properties exempt from LPT?

 

Yes, some properties are exempt. These include:

 

  • Properties with significant pyrite damage.
  • Those built with defective concrete blocks.
  • Residential properties owned by charities or public bodies.
  • Registered nursing homes.
  • Commercial properties.
  • Properties left vacant due to illness.
  • Properties adapted for individuals with severe incapacitation.

 

It’s essential to understand the specifics of each exemption, such as the fact that properties with pyrite damage are typically exempt for around six years.

 

3 – What if my property isn’t liable for LPT?

 

Certain properties aren’t liable, including commercial properties, those unsuitable for habitation, diplomatic properties, and mobile homes or boats. If your property falls under these categories, you won’t need to submit an LPT return.

 

4 – How do I claim an exemption or deferral?

 

To claim any exemption or deferral, you’ll typically do this as part of your LPT return. The Revenue website provides comprehensive lists and accompanying documentation requirements for each category.

 

Always remember to consult official guidelines or seek professional advice when navigating the complexities of the Local Property Tax in Ireland.

Assets encompass valuable items that can be converted to cash, like real estate, shares and intellectual property | Kevin O'Higgins Solicitors

Selling Property In Ireland

Capital Gains Tax On Property Sales

Capital Gains Tax (CGT) is levied on the profit (or gain) made from selling or disposing of an asset.

 

Importantly, the tax is on the chargeable gain, which is usually the difference between the acquisition price and the disposal price, rather than the entire amount received. The person responsible for the disposal is liable to pay the CGT.

 

Assets encompass valuable items that can be converted to cash, such as real estate, shares, and intellectual property. Disposal actions triggering CGT include sales, gifts, exchanges, or receiving compensation or insurance payouts.

What If You Inherit Assets?

If you inherit an asset and subsequently dispose of it, you’re liable for Capital Gains Tax.

 

You’re considered the owner from the date of the original owner’s death, and the cost basis for CGT is the market value at the time of their death.

Capital Gains Tax For Non-Residents

Non-residents are subject to Capital Gains Tax for gains from disposing of:

 

  • Real estate, minerals, or exploration rights in Ireland.
  • Unquoted shares primarily valued from Irish land, buildings, minerals, or exploration rights.
  • Assets used in an Irish-based trade.
  • Companies and CGT

 

While companies typically include capital gains in their Corporation Tax (CT) calculations, they pay CGT instead of CT on gains from development land sales.

What Assets Are Subject to Capital Gains Tax?

Capital Gains Tax applies to gains from disposing of:

 

  • Land and buildings.
  • Company shares, irrespective of residency.
  • Intangible assets like patents or copyrights.
  • Foreign currency (excluding Irish currency).
  • Trade assets.
  • Foreign insurance policies and offshore funds.
  • Certain capital payments.
  • Some collectable items like antiques, paintings, and jewellery.

 

However, several reliefs and exemptions can mitigate the CGT liability, as detailed in the following section.

Exemptions To Capital Gains Tax

Certain gains are not subject to Capital Gains Tax, such as:

 

  • Betting, lottery, and sweepstake winnings.
  • Certain government schemes and stocks.
  • Movables, e.g., furniture, with gains not exceeding €2,540.
  • Animals and private cars.

 

Additionally, asset transfers between spouses or civil partners, including those divorced or separated, are generally CGT exempt, but exceptions apply.

 

Each individual enjoys a personal CGT exemption of €1,270 annually. This exemption is non-transferable and exclusive to individuals, excluding entities like companies or trusts.

For more information on CGT reliefs, please visit Revenue.

To determine the CGT, sum up all gains, substract any losses & apply the relevant tax rate | Kevin O'Higgins Solicitors

How Do You Pay Capital Gains Tax?

Payment deadlines for Capital Gains Tax depend on the disposal date:

 

  • Disposals between January 1 and November 30 require payment by December 15.
  • Disposals in December mandate payment by January 31 of the subsequent year.

 

Late payments attract interest charges, and delayed returns result in penalties. Returns should be filed by October 31 of the year following the disposal, even if no tax is due.

 

To pay CGT in Ireland, visit the Revenue Online Service (ROS) or myAccount.

To make your payment, you must register for CGT with your tax number.

How Do You Calculate Capital Gains Tax?

The chargeable gain is the difference between the disposal amount, acquisition cost, and allowable expenses. To determine the CGT, sum up all gains, subtract any losses, and then apply the relevant tax rate.

 

The prevailing CGT rate is 33%. However, specific rates apply for certain gains:

 

  • 40% for foreign insurance policies and investment products.
  • 15% for individuals or partnerships from venture capital funds.
  • 12.5% for companies from venture capital funds.

 

Allowable expenses can be deducted from the sale price to ascertain the chargeable gain. These include enhancement expenditures or costs related to the acquisition and disposal.

 

Sometimes, the market value might be used in place of sale or purchase prices.

What About Capital Gains Tax Losses?

If you incur a loss upon disposing of an asset, and the same transaction would otherwise be chargeable, you can offset this ‘allowable loss’ against any gains in the same tax year.

 

However, if losses exceed gains in a tax year or no gains were made, these losses can be carried forward to offset future capital gains. You can also offset your capital losses against your spouse or civil partner’s gains, but conditions apply.

Conclusion

Navigating the intricate web of the Irish taxation system, particularly when it involves property transactions, can be daunting for many. Both buying and selling property come with their distinct sets of tax implications, ranging from Stamp Duty to Capital Gains Tax. 

 

This article highlighted some of the most significant taxes a buyer or seller might encounter in the property market. Still, it’s worth noting that this is only the tip of the iceberg. Other financial implications, such as V.A.T., rental income tax, and various exemptions and reliefs, could also influence the final figures of a property transaction.

 

However complex these tax considerations might seem, remember that you don’t have to navigate them alone. While solicitors might not always be the final word in tax expertise, an experienced professional can provide invaluable insights into avoiding potential taxation pitfalls associated with property transactions.

Need More Gudiance On Property Tax?

At Kevin O’Higgins Solicitors, we deliver practical legal advice to guide clients through the intricacies of the property transaction process.

 

Whether you’re on the verge of diving into the property market or simply looking to better understand your tax obligations in property transactions, it’s crucial to gather as much information as possible.

When doubtful, seeking expert advice can save you both time and potential financial pitfalls. If you have any questions or need clarity on the matters discussed in this article or beyond, don’t hesitate to contact us today.

Ireland's Property Tax Playbook: Buying & Selling In 2023 | Kevin O'Higgins Solicitors
The ULTIMATE GUIDE To Enduring Power Of Attorney In Ireland (2023)

The ULTIMATE GUIDE To Enduring Power Of Attorney In Ireland (2023)

Introduction

Life is an unpredictable journey with twists and turns that can challenge our emotional, financial, and mental well-being. While you may not have a crystal ball to see into the future, you can certainly prepare for unforeseen circumstances. One crucial aspect of this preparation, especially for adults at any stage of life, is setting up an Enduring Power of Attorney.

The following guide aims to demystify the subject of Enduring Power of Attorney in Ireland, explaining its importance, legal provisions, and how to go about it (without any stress). Ready to safeguard your future?

What Is Enduring Power Of Attorney?

The purpose of an Enduring Power of Attorney (EPA), is to appoint a person (an Attorney), to manage your personal and/or financial affairs, in the event you become mentally incapacitated.

 

An EPA isn’t just a piece of paper; it’s a lifeline. It is a legal arrangement that ensures someone you trust implicitly can make crucial decisions on your behalf should you no longer have the mental capacity to do so yourself.

 

In simple terms, it’s a way to prepare for the worst, while hoping for the best.

Enduring Power Of Attorney vs. General Power of Attorney

Although this article focuses on the Enduring Power Of Attorney, understanding the different types of Powers of Attorney can help you decide which one suits your specific needs.

 

Powers of Attorney can either be specific, restricting the attorney to a narrow scope of tasks, or general, allowing them to do nearly everything you could do.

General Power of Attorney

A General Power of Attorney empowers someone to manage your property and/or affairs for a limited period. In other words, it’s a short-term delegation of authority.

 

Common use cases include going on an extended holiday or living abroad temporarily. Known also as an Ordinary Power of Attorney, this form is fully operational as soon as you sign it and doesn’t require registration.

Enduring Power of Attorney

If you need someone to act on your behalf because you’ve become mentally incapacitated—due to illness, an accident, or conditions like dementia—an Enduring Power of Attorney is the appropriate choice.

 

Unlike a General Power of Attorney, an EPA must be registered and comes into effect when you are no longer capable of managing your own affairs.

 

By understanding these distinctions, you can make a more informed choice tailored to your unique circumstances.

Without an EPA, the process becomes more complicated and stressful... | Kevin O'Higgins Solicitors

When Is Enduring Power Of Attorney Necessary?

Think of an Enduring Power of Attorney as a safety net for adults of all ages. It’s not merely an “end-of-life” plan but a practical tool for life’s unexpected challenges.

 

There are many ways in which someone can lose their decision-making capacity and an EPA might be necessary. In Ireland, a high number of instances occur due to dementia, Alzheimer and strokes. According to the Alzheimer Society of Ireland, “it is estimated that there are 55,000 people living with dementia” in Ireland, with figures projected to rise above 150,000 by 2045.

 

Whether you’re entering retirement, running a business, or have a chronic illness, an EPA assures that your affairs are in competent hands.

What Safeguards Prevent Abuse Of Power?

An Enduring Power of Attorney is an incredibly potent legal document, granting extensive decision-making authority to your chosen attorney(s).

 

Therefore, it’s paramount to only appoint individuals you deeply trust. But trust isn’t the only line of defence; the system includes several built-in safeguards to minimize the risk of abuse.

 

Here are the key protective measures:

 

  • Registration Requirement: Attorneys cannot exercise any authority unless the EPA is registered. During the registration process, specific parties have the legal right to object, adding a layer of scrutiny.

  • Notification of Intent to Register: Before registration can proceed, those designated to act as your attorney must notify at least two individuals specified in the EPA document. This gives these individuals the opportunity to raise objections if they have concerns.

  • Medical Certification: An EPA is only actionable with at least one doctor’s certificate confirming that you have become incapable of managing your own affairs. Moreover, when the EPA was initially drafted, a doctor would have also issued a certificate asserting that you, the donor, fully understood the implications of what you were doing, and were neither under undue influence nor defrauded.

  • Donor Restrictions: As a donor, you have the option to specify conditions, restrictions, or limitations on what your attorney(s) can and cannot do on your behalf.

 

By understanding and leveraging these safeguards, you can further secure your interests and well-being.

Can I Revoke An Enduring Power Of Attorney?

After your Enduring Power of Attorney has been registered, you have the option to either revoke or modify it by notifying the Decision Support Services (DSS). However, this is only possible if the DSS has not already accepted a notification indicating your loss of mental capacity.

 

It’s worth noting that EPAs created prior to April 26, 2023, are not required to be registered. Should you wish to cancel your EPA, you can either physically destroy the document or supersede it with a new one.

 

To formally revoke or amend your EPA, your application must include the following:

 

  • A declaration confirming your understanding of the consequences of your actions.

  • A statement from a solicitor or barrister, corroborating that you fully grasp the implications of your request and are not acting under external pressure.

  • If you’re making changes, a confirmation statement from the attorney acknowledging the amendments.

 

For EPAs generated before April 26, 2023, registration with the DSS is not obligatory, and revocation can only occur through the High Court.

Do I Need An Enduring Power Of Attorney?

Yes, an Enduring Power of Attorney isn’t just a document for potential worst-case scenarios; it’s a strategic component of a well-rounded life plan.

 

It gives you and your loved ones the peace of mind that you have a plan in place.

What If I Don't Have An Enduring Power Of Attorney?

Without an EPA, the process of assigning someone to make decisions for you becomes more complicated and stressful.

 

If you do not have an EPA in place and lose mental capacity, your family will have to apply to the Court of Protection for a wardship order.

 

Applications for wardship are a court-based process. They can be both lengthy and expensive. It is much easier for everyone concerned if you have an EPA in place before any unfortunate situation arises.

How Do You Register An Enduring Power Of Attorney?

Registration isn’t just filling out a form and calling it a day; it’s a multi-step, legally intricate process that requires meticulous attention to detail.

 

The Decision Support Services (DSS) provides an online portal where individuals can initiate the process of setting up an EPA. While the online process offers some convenience, there are alternative methods available for those who find it challenging.

 

For example, you can authorise a legal representative to interact with the DSS on your behalf. This enables you to proceed through a paper-based manual process. Once you complete the EPA in paper form, it can be submitted to the DSS for registration.

 

Please note that you’ll need to verify your identity with the DSS as part of this process.

When Do You Register An Enduring Power Of Attorney?

Registration is a critical step that is triggered when you are losing or have lost mental capacity. It’s not just a procedural formality; it’s a legally mandated step to ensure that your attorney is properly empowered to act on your behalf.

The key factor is the level of trust and understanding between you and the individual or entity | Kevin O'Higgins Solicitors

Who Should Be Your Enduring Power Of Attorney?

The selection of your Enduring Power of Attorney is not a decision to take lightly. This person will hold significant influence over your life, especially during vulnerable moments.

 

Consider their reliability, understanding of your wishes, and their ability to make tough decisions under pressure.

Who Cannot Be Your Enduring Power Of Attorney?

Just as there are qualities to seek in an EPA, there are also legal restrictions on who can serve in this role. For example:

 

  • Minors: Individuals under the age of 18 are ineligible.

  • Bankruptcy Filers: Persons who are bankrupt cannot serve as your attorney.

  • Fraud Convicts: If someone has been convicted of fraud, they are disqualified.

  • Company Act Disqualifications: Individuals disqualified under the Companies Act are not eligible.

  • Nursing Home Owners: If you reside in a nursing home, the owner—be it an individual or a trust corporation—cannot be your Enduring Power of Attorney.

 

By knowing who can and cannot be your attorney, you can make a more informed, legally sound decision.

Does Your Enduring Power Of Attorney Have To Be Family?

There’s a common misconception that your EPA must be a close family member. While many people do opt for relatives—owing to established trust and familiarity—it’s not a legal requirement.

 

Friends, business associates, or professional fiduciary services can also serve as your EPA. The key factor is the level of trust and understanding between you and the individual or entity.

Nominating A 3rd Party In Your Enduring Power Of Attorney

In complex situations, or to add an additional layer of security, a third-party nomination can serve as a ‘check’ on your primary EPA. This entity can be given specific oversight duties, adding another level of due diligence.

What Are Enduring Power Of Attorney Notice Parties?

In addition to informing your chosen Attorneys about the responsibilities you’re entrusting to them, you’re also required to notify two other individuals. They are known as your ‘Notice Parties.’

 

The criteria for selecting your Notice Parties are as follows:

 

  • If you are married or in a civil partnership and are cohabiting with your spouse or civil partner who is not serving as your Attorney, they must be one of the Notice Parties.

  • Your child can also serve as a Notice Party.

  • If you neither have a spouse, a civil partner, nor a child, you are obligated to select two relatives to act as your Notice Parties.

 

It’s important to note that these Notice Parties will be informed once more if there comes a time when the EPA needs to be activated.

The 2015 Act introduces a supported decision-making framework in Ireland | Kevin O'Higgins Solicitors

What Irish Laws Govern Enduring Power Of Attorney?

Laws are not static; they evolve, and understanding the current legislative landscape is crucial. Several key pieces of legislation govern EPAs in Ireland.

Assisted Decision-Making (Capacity) Act 2015

Since 26 April 2023, the Assisted Decision-Making (Capacity) Act 2015 has been fully operational concerning Enduring Powers of Attorney. The 2015 Act overhauls the previous framework, introducing a new, supported decision-making framework in Ireland.

 

In short, it allows people to make legal agreements on how they can be supported to make decisions about their personal welfare, property and financial affairs. Applications for adults to become a Ward of Court can no longer be made.

Decision Support Services (DSS)

A noteworthy change is the establishment of a new Government Agency—the Decision Support Services (DSS). This agency has assumed the responsibilities previously held by the Wards of Court in the realm of EPAs.

 

The DSS provides an online portal where individuals can initiate the process of setting up an EPA. While the online process offers convenience, it may not be suitable for everyone due to its requirement for a certain level of IT competency.

 

If you find the online process challenging, there are alternative methods available. For instance, you can authorize a legal representative to interact with the DSS on your behalf. This enables you to proceed through a paper-based manual process.

 

Once you complete the EPA in paper form, it can be submitted to the DSS for registration. Please note that you’ll need to verify your identity with the DSS as part of this process.

Powers of Attorney Act 1996

The 1996 Powers of Attorney Act serves as the cornerstone legislation governing Powers of Attorney in Ireland.

 

This Act experienced a significant update with the enactment of the 2011 Civil Law (Miscellaneous Provisions) Act. This amending Act introduced a new provision stating that an Enduring Power of Attorney will be nullified if the donor decides to revoke it before losing mental capacity.

 

It’s also important to note that the 1996 Powers of Attorney Act lays down the essential criteria that must be fulfilled for an Enduring Power of Attorney to be legally valid. This sets the foundational guidelines you’ll need to meet when establishing your EPA.

The Role Of The High Court

It’s essential to understand that the High Court plays a supervisory role when it comes to Enduring Powers of Attorney. Once an EPA is registered, its cancellation can only be approved by the High Court. This body also has the authority to provide directives concerning the management and disposal of the Donor’s assets.

What Does "Losing Mental Capacity" Mean?

Mental capacity is a complex and nuanced subject. Having a mental illness or going through a period of being unwell does not necessarily mean you’ve lost your mental capacity to make decisions for yourself.

 

In the context of an EPA, losing mental capacity is formally determined by a healthcare provider, typically a general practitioner or doctor.

 

In Ireland, the criteria to establish loss of mental capacity include:

 

  • The ability to understand the information relevant to the decision in question

  • The capability to retain that information long enough to arrive at a decision

  • The aptitude to weigh that information during the decision-making process

  • The competence to communicate the decision clearly

 

If you are concerned about your ability or that of a loved one to make reasoned decisions, it is strongly recommended that you seek medical consultation. If the doctor diagnoses a loss of mental capacity, it may be time to consider establishing or activating an Enduring Power of Attorney.

When Should "Incapacity" Be Notified?

The moment incapacity is suspected or confirmed, it should be reported to activate the EPA. However, understand that ‘activation’ is not a simple switch; it is a process that involves legal verification and potential court involvement.

The Scope Of An Enduring Power Of Attorney's Power

Understanding the parameters of the EPA can be likened to knowing the rules of a game—you play better when you know the boundaries. Your Enduring Power of Attorney’s role is not a blanket authority but is governed by the specific powers you grant in the legal document.

What Is An Enduring Power Of Attorney Obligated To Do?

The scope of your Enduring Power of Attorney’s obligations depends on the level of decision-making authority you grant them. An EPA can extend to both your financial and personal life, so it’s critical to choose wisely.

Financial Decisions

Financial responsibilities generally encompass, but are not limited to:

 

  • Management of your bank accounts

  • Oversight of your savings accounts

  • Engagement in investment activities, including buying and selling

  • Payment of your ongoing bills

  • Real estate transactions, such as buying or selling property

Personal Decisions

On the personal front, responsibilities can include but are not restricted to:

 

  • Deciding where you should live

  • Determining whom you should live with

  • Managing social interactions, including who you should or should not see

  • Recommending or overseeing training or rehabilitation programs

  • Making decisions about your diet and dress

  • Granting or denying permission to inspect your personal papers

  • Handling matters related to housing, social welfare, and other benefits

 

It’s crucial to note that these duties need to align with your wishes and best interests, a key aspect to discuss with your attorney(s) when setting up your EPA.

Common Mistakes With Enduring Power Of Attorney

Even with the best of intentions, mistakes can happen. Here are some pitfalls to avoid:

 

  • Ambiguous Language: Lack of clarity can lead to disputes. Be as specific as possible.

  • Failure to Update: Life changes, and so should your EPA. Regular reviews are essential.

  • Not Discussing Duties: The appointed attorney should be aware of and comfortable with their roles and responsibilities.
Having an EPA can significantly ease the emotional and logistical burdens on your family | Kevin O'Higgins Solicitors

Who Monitors Enduring Power Of Attorneys?

The Decision Support Services (DSS) monitors the Enduring Power of Attorney.

How Do They Monitor An Enduring Power Of Attorneys?

If your attorney informs the DSS that you have lost your decision-making capacity, they must also submit a list of your assets. Each year, your attorney must submit a written report to the DSS setting out the costs, expenses and/or money paid. It’s crucial to maintain accounts and records of decisions.

 

If the DSS receive a complaint or wishes to check the activity of your attorney, they can send a visitor to speak with your attorney.

 

Here’s a quick breakdown of the various avenues that provide a safety net:

 

  • Court Oversight: Courts may require periodic reporting and can review any actions undertaken by the attorney.

  • Financial Audits: Depending on the scope of the EPA, external audits can be carried out to ensure financial propriety.

  • Third-Party Reports: Notice parties, social workers, or healthcare providers can serve as additional sets of eyes.

Frequently Asked Questions

As we’ve dived deep into the world of Enduring Power of Attorneys in Ireland, you likely have some questions. Here are some commonly asked queries and their answers:

What Is The Cost Of An Enduring Power Of Attorney?

In Ireland, the cost of an Enduring Power of Attorney can range from €500 to €1,000 in solicitor fees, with court registration costs added to the total. While costs can vary, it’s an investment in your peace of mind.

Can An Enduring Power Of Attorney Change A Will?

An Enduring Power of Attorney has no authority to change your will. Their jurisdiction ends with your life’s affairs and does not extend into posthumous matters.

Is An Enduring Power Of Attorney Valid After Death?

The Enduring Power of Attorney loses its validity the moment the donor passes away. From that point, the executor named in your will takes over.

Conclusion

Preparing for life’s uncertainties, especially as you approach your later years, is a topic many shy away from. However, the importance of this planning cannot be overstated. Having an Enduring Power of Attorney can significantly ease the emotional and logistical burdens on your family and loved ones should the unforeseeable occur.

If you find yourself with lingering questions or need expert assistance in setting up an Enduring Power of Attorney, we’re here to help. With years of specialised experience in elderly care law, Kevin O’Higgins Solicitors is equipped to guide you through this crucial life-planning phase. Contact us today for peace of mind for tomorrow.

The Ultimate Guide To Enduring Power Of Attorney In Ireland (2023) | Kevin O'Higgins Solicitors