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Inheritance Tax

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  • 16-09-2008 6:44pm
    #1
    Dave Cunningham
    Closed Accounts Posts: 1 ✭


    My wife father passed away and left approx 30 acres of land and 1 house. He did not leave a will and was married to another woman as my wifes mother died many years ago. I believe the law states that my wife and her three brothers are entitled to one third of the estate and his wife is entitled to two thirds. Assuming the estate is worth 1 Million, each child would receive 83,000 plus and the wife would receive 650,000 plus. What are the tax implications for the children.

    Any help.

    Dave Cunningham


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    #2
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Tax implications for the children are nil.
    They are a Class A recipient of the estate (where the beneficiaries are the children of the person whose estate is being bequeted). In 2008 the threshold for a Class A recipient of an estate is EUR521,208.

    Note: if any of the children received a gift from their parent in the previous 5 years- it is added to the current amount and if still under the EUR521,208 total, no tax is due.

    S.


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    #3
    dats_right
    Registered Users Posts: 1,168 ✭✭✭dats_right


    smccarrick wrote: »
    Note: if any of the children received a gift from their parent in the previous 5 years- it is added to the current amount and if still under the EUR521,208 total, no tax is due.

    Just to correct this point. Currently, any gift/inheritance recieved by a donee from a disponer within the same group threshold is aggregated back to 5th December 1991. Which means in this case that any gift/inheritance received from their parents from the 5th December 1991 is taken into account for CAT calculation purposes.

    A simple illustration e.g. if each child say previously recieved a prior benefit i.e. inherited €250,000 from their mother in 1993, then that would leave each with €271,208 in unused threshold i.e. each could inherit up to this amount without any tax liability. And say if one of the siblings Brother A had also been gifted a house (excluding any possible reliefs) valued at €250,000 from the father in 1999, his unused threshold would only be €21,208, meaning that anything inherited now over and above this amount would be liable to tax at 20%.


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