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Widow required to report inheritance from husband

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  • 27-05-2014 7:41pm
    #1
    OneManNoDucks
    Registered Users Posts: 7 ✭


    A friend passed away last year, he was domiciled abroad and his estate was administered abroad. His wife, resident here, inherited some savings that he had in an account in his name. She was told by a solicitor, that any inheritance from a spouse is tax exempt, and us such she does not need to report it to Revenue.

    She is worried that this may not be the case, and wondered whether she might need to report it. I reckoned someone on boards might know if the solicitor is correct? Does a wife have to report an inheritance from her husband to revenue?

    Thanks.
    Tagged:


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    #2
    Mr. Incognito
    Registered Users Posts: 9,798 ✭✭✭Mr. Incognito


    You must make a tax return if the total value of gifts and inheritances you have received in one of the groups, A, B or C, since 5 December 1991 is more than 80% of the tax-free threshold for that group.


    http://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_acquisitions_tax.html

    Also, if you don't make the return you can lose the exemption.


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    #3
    OneManNoDucks
    Registered Users Posts: 7 ✭OneManNoDucks


    So would I be correct in saying that since an inheritance from a spouse isn't in groups A, B, or C and doesn't have a threshold, that there would be no need for her to report it?


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    #4
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 51,687 Mod ✭✭✭✭Stheno


    From Revenue
    Surviving Spouse or Surviving Civil Partners

    If you are a surviving spouse OR surviving civil partners taking an inheritance from your deceased spouse or civil partner, the inheritance is completely exempt and, no matter how valuable, will not be liable to Inheritance Tax.
    An IT38 Return (Inheritance Tax/Gift Tax Return) must be filed when an inheritance either by itself or when aggregated with prior benefits taken by the donee, exceeds 80% of the appropriate tax-free amount.)


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    #5
    elperello
    Registered Users Posts: 14,970 ✭✭✭✭elperello


    The solicitor was right. Inheritance from spouse is exempt. If your friend's wife has any nagging doubts better to go back to the solicitor for clarification or contact revenue direct. Peace of mind is important in cases like this.


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    #6
    OneManNoDucks
    Registered Users Posts: 7 ✭OneManNoDucks


    Thanks for all the replies. Will let her know.


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    #7
    December2012
    Registered Users Posts: 4,695 ✭✭✭December2012


    elperello wrote: »
    The solicitor was right. Inheritance from spouse is exempt. If your friend's wife has any nagging doubts better to go back to the solicitor for clarification or contact revenue direct. Peace of mind is important in cases like this.

    According to Irish law.

    However as he was domiciled abroad it is worth looking into how that country's tax and inheritance laws apply, as there is not always uniformity of principles or laws.


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