Newsletter - May 2026

Newsletter - May 2026 https://foresthillfinancialplanningstepchangecc.newsweaver.com/Newsletter/ en-us 20 May 2026 12:14:46 IST 20 May 2026 12:14:46 IST https://foresthillfinancialplanningstepchangecc.newsweaver.com/Newsletter/rss.xml Newsweaver brian@foresthill.ie (Foresthill Financial Planning) support@newsweaver.ie (Newsweaver) 60 true Welcome to this latest edition of our newsletter. https://foresthillfinancialplanningstepchangecc.newsweaver.com/Newsletter/4g8vkf3xt2g?lang=en&rss=true Welcome to this latest edition of our newsletter, we hope that there is something thought provoking in here, that will help you make positive progress with your personal finances. Our first article this month looks at the benefits of achieving an efficient transfer of family wealth to the next generation, and the importance of structured estate planning. This is followed by a piece that was penned after a question from a client about a new protection policy - she wanted to fully understand what she will be paying for. This prompted us to outline the benefits and to do a deep dive into claims statistics in 2025. After all, the purpose of these insurances is to ensure you are financially protected in your hour of need. Finally we've provided our usual selection of articles that we found on the web that we think might be of interest to you. Best wishes 11 Jul 2021 12:00:00 IST a2483e8fa3aa20dc5c8ff2f082140cf9 Feature Article Welcome to this latest edition of our newsletter, we hope that there is something thought provoking in here, that will help you make positive progress with your personal finances.     Our first article this month looks at the benefits of achieving an efficient transfer of family wealth to the next generation, and the importance of structured estate planning.    This is followed by a piece that was penned after a question from a client about a new protection policy - she wanted to fully understand what she will be paying for. This prompted us to outline the benefits and to do a deep dive into claims statistics in 2025. After all, the purpose of these insurances is to ensure you are financially protected in your hour of need.    Finally we've provided our usual selection of articles that we found on the web that we think might be of interest to you.     Best wishes Structuring your legacy with purpose and efficiency https://foresthillfinancialplanningstepchangecc.newsweaver.com/Newsletter/tsxlpljvkg5?lang=en&rss=true As our clients move through different stages of their financial lives, a noticeable shift tends to occur. The focus gradually evolves from immediate financial needs toward longer-term planning, particularly around retirement and increasingly, the efficient transfer of wealth to the next generation. 06 May 2026 12:00:00 IST 827effbfeb00ac8f3129c98ffc9c4ae9 Main Articles As our clients move through different stages of their financial lives, a noticeable shift tends to occur. The focus gradually evolves from immediate financial needs toward longer-term planning, particularly around retirement and increasingly, the efficient transfer of wealth to the next generation. As our clients move through different stages of their financial lives, a noticeable shift tends to occur. The focus gradually evolves from immediate financial needs toward longer-term planning, particularly around retirement and increasingly, the efficient transfer of wealth to the next generation.   This naturally leads to more structured conversations about estate planning. At its core, estate planning is not just about tax, it is about clarity of purpose. What is your wealth ultimately for? Is it to fully support your own lifestyle throughout retirement? To provide meaningful financial support to your children? Or a balance of both?   There is no universally “correct” answer. However, being intentional about this decision is essential, as it directly influences how your estate should be structured.     Tax plays a big role in Ireland In Ireland, the transfer of wealth is primarily impacted by Capital Acquisitions Tax (CAT). For most families, the key threshold is the Group A (parent to child) threshold, which currently stands at €400,000 per child. Any inheritance above this level is subject to CAT at a rate of 33%. There are lower thresholds for other less direct relationships.   While this may initially seem like a relatively generous threshold, it is increasingly being exceeded due to rising property values and accumulated savings over a lifetime. As a result, many beneficiaries now face significant tax liabilities on inheritances that would previously have fallen below the threshold. Before the financial crash in 2009, this Group A threshold was over €542,000.   It’s also important to remember that CAT is a liability for the recipient, not the person giving the gift or leaving the inheritance. This distinction often shapes how families approach planning.     There are planning options available The good news is that there are several well-established strategies available to mitigate future CAT liabilities, particularly when planning is done early. One of the simplest and most effective tools is the Small Gift Exemption. This allows any individual to gift up to €3,000 per year to any recipient, completely free of CAT and without impacting the child’s lifetime threshold. Over time, this can become a powerful method of transferring wealth gradually and tax-efficiently.   For example, a couple with two children could transfer €12,000 per year (€3,000 x 2 parents x 2 children) without any tax implications, significantly reducing the eventual taxable estate.     Using financial products to fund tax liabilities For those who want greater certainty around the preservation of assets, particularly illiquid ones like property or family businesses, financial products can play a central role.   Two commonly used structures in Ireland are Section 72 and Section 73 policies: <ul type="disc"> <li>Section 72 policies are life assurance policies specifically designed to cover CAT liabilities arising on death. The policy proceeds can be used by beneficiaries to pay inheritance tax, ensuring that assets do not need to be sold to meet the tax bill. The headline benefit of these policies is that the proceeds of the policy will ultimately be tax-free to the beneficiaries, as long as the proceeds are used to pay Inheritance Tax. With current CAT rates of 33%, this is a big future saving.</li> <li>Section 73 policies are savings / investment policies that are structured to cover CAT on lifetime gifts. These are particularly useful where parents wish to transfer assets during their lifetime, but want to ensure that any resulting tax liability is pre-funded.</li> </ul>   When structured correctly, the proceeds from these policies can be applied directly against the CAT bill, offering a high degree of certainty and preserving family assets across generations.     Balancing lifestyle and legacy Ultimately, estate planning is about balance. Some individuals take the view that their wealth is theirs to enjoy fully during their lifetime, with any remaining assets passing on after death, even if that results in a tax bill.   Others prefer a more structured approach, aiming to pass on wealth as efficiently as possible, ensuring that assets such as a family home or holiday property can remain within the family without being sold to fund tax liabilities.   Neither approach is inherently "right". However, without planning, families may find themselves in a position where valuable assets must be liquidated to meet tax obligations. This is often something that could have been avoided.     Estate planning in Ireland has become increasingly important due to relatively modest tax thresholds and the high CAT rate of 33%. However, with early planning and the right combination of strategies, such as annual gifting and targeted life assurance, families can significantly improve outcomes. A well-structured plan allows you to enjoy your wealth during your lifetime, while also ensuring that your legacy is passed on in a controlled and tax-efficient manner.   If you would like to understand how these rules may apply to your own situation, or explore strategies tailored to your family, we would be happy to guide you through the options.   https://foresthillfinancialplanningstepchangecc.newsweaver.com/v3files/shard1/54245/56/b4eae3b3596bfee57dc030.jpg https://foresthillfinancialplanningstepchangecc.newsweaver.com/v3files/shard1/54245/56/b4eae3b3596bfee57dc030.jpg What exactly am I paying for? https://foresthillfinancialplanningstepchangecc.newsweaver.com/Newsletter/1289h71vha0?lang=en&rss=true We were asked this question recently by a client to whom we were recommending a Specified Illness policy. Our answer was that should she suffer one of the serious illnesses covered by the policy, she was preventing financial concerns being heaped upon the worries she would have about her health, at the time of trying to get better. Not having to worry about money would be invaluable at that time of significant stress. 06 May 2026 12:00:00 IST a886226d6816b484b060fd39273e2ce0 Main Articles We were asked this question recently by a client to whom we were recommending a Specified Illness policy. Our answer was that should she suffer one of the serious illnesses covered by the policy, she was preventing financial concerns being heaped upon the worries she would have about her health, at the time of trying to get better. Not having to worry about money would be invaluable at that time of significant stress.   We were asked this question recently by a client to whom we were recommending a Specified Illness policy. Our answer was that should she suffer one of the serious illnesses covered by the policy, she was preventing financial concerns being heaped upon the worries she would have about her health, at the time of trying to get better. Not having to worry about money would be invaluable at that time of significant stress.   The “cost” of the policy would be the premiums paid for no monetary return, should she avoid a serious illness - that would otherwise undermine her quality of life - for the duration of the policy.    Our client followed our advice and now has more peace of mind about her financial future.   Her question also prompted us to show her Irish Life’s claims statistics for last year, as a representative sample of the overall market picture. They also gave her significant peace of mind so we thought it might be useful to share some of the highlights from the 2025 figures.   Irish Life paid out over €400 million in protection claims, to meet just under 8,000 individual claims in 2025. They paid out on average over €7.7 million each week.   Nearly 2 out of 3 claims paid were for Living Benefits claims - there’s a lot more to financial protection than just paying claims when people die. The 4,830 claims that Irish Life paid in 2025 for living benefits were for Specified Illness lump sums or Income Protection - regular payments if you can’t work due to an accident or illness.   Causes of claims Life Insurance claims payable on death tend to be for significantly larger amounts than Living Benefit claims. The largest life assurance claim paid in 2025 was for €12.7 million, while the largest Specified Illness claim was for €666,000. While death claims only accounted for 37% of the claims by number of claims, over €265 million was paid out on death – 66% of the total amount. 98.7% of death claims were paid out. Cancer was the largest cause of death, accounting for 32% of life assurance claims, followed by respiratory disease.   When it came to Specified Illness claims – lump sum amounts paid on the diagnosis of a specified illness, cancer was responsible for more than 2/3rds of claims, with breast cancer being the biggest cause of claims among women and prostate cancer among men. The average claim amount was over €62,000, a very useful financial payout for claimants who had just got bad news. This certainly would have eased their financial worries in their hour of need.   Cancer again was the main cause of Income Protection claims in 2025, with the average claim amount being over €25,000. But remember, this amount is often paid each year until the claimant returns to work or reaches retirement age. This is a hugely valuable benefit.   There were gender differences There were notable differences between men and women in terms of Specified Illness Cover and Life Insurance claims paid during 2025. Malignant prostate cancer in males and malignant breast cancer in females were the no. 1 causes of claims for each gender. Also, while the overall split of claims was fairly equal between men and women, males made 66% of the claims in relation to strokes (of specified severity) and 80% of the claims for heart attacks.   The largest life assurance claim on death in 2025 was for a male, with a claim amount of €12.7 million, while the largest claim amount for a female was €2 million. 39% of female claims and 30% of male claims were as a result of death caused by cancer.   The average age of a life assurance claimant was 68, while the average age of a specified illness claimant was 54.   So what can we learn from all of this? We know that none of this makes happy reading, as there are either bereaved families, seriously ill people or others unable to work behind every claim statistic.   However, it is comforting to know that in that time of grief or personal financial need, the advice given to take out life assurance, specified illness and income protection policies has made the lives of many claimants a lot easier to bear. https://foresthillfinancialplanningstepchangecc.newsweaver.com/v3files/shard1/54245/59/fbee65c364cbdd663ad885.jpeg https://foresthillfinancialplanningstepchangecc.newsweaver.com/v3files/shard1/54245/59/fbee65c364cbdd663ad885.jpeg How To Peakspan Your Retirement https://foresthillfinancialplanningstepchangecc.newsweaver.com/Newsletter/an3i1oxs7qe?lang=en&rss=true The most crucial component in your retirement plan is how to manage the gradual decline in all aspects of your health. 06 May 2026 12:00:00 IST b1b18cefafef5c5c746b5fae96bf628b Around the Web The most crucial component in your retirement plan is how to manage the gradual decline in all aspects of your health. How To Peakspan Your Retirement https://tonyisola.com/2026/03/how-to-peakspan-your-retirement/ Lifestyle Creep: The Silent Killer of Entrepreneurial Wealth https://foresthillfinancialplanningstepchangecc.newsweaver.com/Newsletter/7yhpxw6pue4?lang=en&rss=true Avoid your standard of living steadily rising with your income, keeping you stuck on a treadmill. 06 May 2026 12:00:00 IST eac44192cf194fd48827e4d5c0c609b4 Around the Web Avoid your standard of living steadily rising with your income, keeping you stuck on a treadmill. Lifestyle Creep: The Silent Killer of Entrepreneurial Wealth https://due.com/lifestyle-creep-the-silent-killer-of-entrepreneurial-wealth/ The Quiet Transformations That Separate Investors from Stewards https://foresthillfinancialplanningstepchangecc.newsweaver.com/Newsletter/55ssmc1yll7?lang=en&rss=true The most consequential changes in an investor's life aren't numerical at all. 06 May 2026 12:00:00 IST ae275fb7f3fe521dec8bb90949797434 Around the Web The most consequential changes in an investor's life aren't numerical at all. The Quiet Transformations That Separate Investors from Stewards https://bogumilbaranowski.substack.com/p/napkin-portfolios-a-forest-youll Scam University https://foresthillfinancialplanningstepchangecc.newsweaver.com/Newsletter/1ejyhu3ecbq?lang=en&rss=true A useful resource from the CCPC dedicated to all types of scams, helping you to stay safe and outsmart the scammers. 06 May 2026 12:00:00 IST aab0058641d1dd12474a6015e907d590 Around the Web A useful resource from the CCPC dedicated to all types of scams, helping you to stay safe and outsmart the scammers. Scam University https://www.ccpc.ie/consumers/money/scams/scam-university/ Very Fast, Not Very Smart https://foresthillfinancialplanningstepchangecc.newsweaver.com/Newsletter/17t0zav7xf9?lang=en&rss=true Don’t confuse the speed of markets with the wisdom of them. They are very fast. They are not always very smart. 06 May 2026 12:00:00 IST 787ad785eaa7e3aa9aa989e5bb1cc5ea Around the Web Don’t confuse the speed of markets with the wisdom of them. They are very fast. They are not always very smart. Very Fast, Not Very Smart https://humbledollar.com/forum/very-fast-not-very-smart/ How reading books regulates your nervous system https://foresthillfinancialplanningstepchangecc.newsweaver.com/Newsletter/1r9ffb2gp8p?lang=en&rss=true Books don't just stimulate the mind - they trigger physiological changes throughout the body. 06 May 2026 12:00:00 IST c7f5e6c472dd4979899754769b6a21b3 Around the Web Books don't just stimulate the mind - they trigger physiological changes throughout the body. How reading books regulates your nervous system https://bigthink.com/mind-behavior/how-reading-books-regulates-your-nervous-system/