Male friends will marry to avoid paying inheritance tax

AN 85-year-old man is to marry his male carer to avoid inheritance tax when he passes on his home.

Matt and father-of-three Michael O’Sullivan have been friends for more than 30 years and will tie the knot next month in Tipperary.

Both men are straight but decided it was the best way to avoid a substantial tax bill on Matt’s Dublin home.

“I am marrying him because he will be part of my life when I die and whatever I have, ie my home, there will be no problems, he can have it,” he said. “It’s a way to avoid tax. I thought it was a very good thing that came into my head to say, nowadays, this is official.”

A FATHER-of-three is set to marry his 85-year-old friend to avoid paying a tax bill when he inherits the older man’s home.

Michael O’Sullivan, from Stoneybatter, north Dublin, has told how the pair have decided to tie the knot next month in a ceremony in Tipperary.

The pair have been friends for almost 30 years and Mr O’Sullivan now acts as Matt’s carer.

Neither of the men are gay but they came to the conclusion that getting married was “not a bad idea” in order to sidestep a chunky tax bill when Matt passes on his north Dublin home in his will.

Matt (85) told RTÉ’s ‘Liveline’ that Mr O’Sullivan was “his best friend”.

“I am marrying him because he will be part of my life when I die and whatever I have, ie my home, there will be no problems, he can have it.

“It’s a way to avoid tax. If he is to pay to look after me in my old age. I thought it was a very good thing that came into my head to say, nowadays, this is official.”

The Capital Acquisitions Tax (Cat) is placed on gifts and inheritances that are over a set value. There are different thresholds which depend on your relationship to the person who gave the gift.

Cat is charged at the rate of 33pc but a person does not pay Cat on a gift or inheritance if it is given by their spouse or civil partner.

Matt went on to tell ‘Liveline’ host Joe Duffy that he had never married and O’Sullivan was divorced with three grown-up children.

“I never married, he was married and has a talented daughter in London, he had another partner and another daughter and son with them. They are grown up now and he is officially divorced. With the house, this is the easiest way,” he said.

Duffy asked him what would happen if O’Sullivan met a woman, but Matt said his friend has assured him that even if he did, he was happy to remain as just partners with any potential new love.

Matt said: “I did ask him what would happen if he met a woman, but he has said it would only ever be a partner for him.”

Mr O’Sullivan also spoke to ‘Liveline’ and explained that he and Matt had known each other for a very long time.

“I know Matt 29 years, the same age as my own daughter, and he lives in the same area, Stoneybatter,” he said. “He is one of the nicest people you could ever meet in your life.

“Matt said to me ‘look, I’m going to leave you the house’. I said it’s a nice idea but because of tax reasons I’d have to pay half to the Government.

“But once we are married, I’m his spouse then and if one partner dies, the house automatically goes to the other partner.”

O’Sullivan explained that his children were fine with his decision as they all knew Matt a very long time. “I love Matt, but not in a sexual way. I’m his carer now and as Matt said to me one day, ‘it isn’t a bad idea’.”