We welcome this policy change however there are several caveats the public should be aware of, Shadow Minister of Finance Dr. Douglas De Couto said as he responded to the Government’s decision about land tax exemptions and surviving senior spouses.
Dr. De Couto said, “Recently, the Government announced that land tax exemptions for surviving spouses of a deceased senior citizen [65+] may be continued for up to two years while probate is completed. The One Bermuda Alliance recognizes that lengthy probate delays are causing financial hardship and unnecessary distress on many Bermudian families, and we welcome this policy change.
“However there are several caveats the public should be aware of.
“First, the land tax exemption can only be continued if the spouse is also 65 years or older. This policy will not help, for example, when a senior citizen passes away without a spouse, leaving their estate with children who are not also seniors. Examples like this were highlighted by questions in Parliament from my fellow OBA MPs on Friday.
“Second, while the land tax exemption for seniors can apply to any property which is their primary residence, it only applies on the amount of ARV up to $45,500 [$1,941 of land tax]. Land tax must be paid for all the ARV above that.
“Thirdly, and perhaps most importantly, this policy change is a band-aid on the underlying problem: unreasonably lengthy probate delays that impact all Bermudian families.
“Unfortunately, Government has not seemed to make any progress on actually reforming probate delays. For example, are the courts supplied with enough staff and proper resources to handle probate applications? Is the Land Valuation Office set up to handle the volume, given that they often assess property valuations in probate applications?
“Like most other announcements from the Government, this is yet another piece of window dressing that pretends to offer meaningful change Bermudians. Meanwhile, the real problems remain unaddressed while Government pats itself on the back.”
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