Services

Inheritance and Gift Tax

Inheritance Tax Planning Monaghan

In Ireland the beneficiary of an inheritance may be liable for tax if the value of the assets exceed certain thresholds. These thresholds are detailed in the tables below.

Group A Group B Group C
Relationship to Disponer Son/Daughter Parent*/Brother/Sister/ Relationship other than

Amounts below these thresholds are tax-free, however it is always worth speaking with a financial advisor in advance as these thresholds may be subject to change in subsequent governmental budgets. Amounts above the threshold are subject to the taxable rate in place at the time of death. For current tax rates on inheritance, please see the table below or call Eugene on (047) 82000 for further information.

Group Thresholds Applicable for Capital Acquisitions Tax from 14 October 2015

Group A Group B Group C
Niece / Nephew / Grandchild Group A or B
Group Threshold, on or after 14/10/2015 €280,000 €30,150 €15,075

 

Group Thresholds Applicable for Capital Acquisitions Tax from 6 December 2012

Group A Group B Group C
Relationship to Disponer Son/Daughter Parent*/ Brother / Sister / Niece / Nephew /Grandchild Relationship other than Group A or B
Group Threshold 06/12/2012 – 13/10/2015 €225,000 €30,150 €15,075

 

Group Thresholds Applicable for Capital Acquisitions Tax from 7 December 2011

Group A Group B Group C
Relationship to Disponer Son/Daughter Parent*/ Brother/Sister /Niece / Nephew /Grandchild Relationship other than Group A or B
Group Threshold 07/12/2011 – 05/12/2012 €250,000 €33,500 €16,750

 

* In certain circumstances a parent taking an inheritance from a child can qualify for Group A threshold

As you can see from the tables above, the amount of tax payable depends on the amount of the inheritance and the relationship with the heir.

Gift Tax Planning Monaghan

What is the difference between a gift and an inheritance?

There is one clear distinction between a gift and an inheritance and that is; a gift is given by someone living, an inheritance is received after the person has died.

Are there any exemptions to gift and inheritance tax?

Yes, there are some circumstances where gift or inheritance tax is not liable for tax, these are:

  • You are entitled to receive up to €3,000 as a gift per calendar year without tax liability.
  • Gifts made between spouses are not liable for tax.
  • If a gift has been made to a child who subsequently dies, this inheritance returns to the parent without tax liability.
  • If a house has been gifted or left to you in a will and you are the principal resident of this property for a minimum of 3 years prior to inheriting it, without interest in another residence, no tax is payable. The house must not be sold within 6 years of receipt or tax will be payable.

Inheritance and Gift Tax Planning Monaghan

If you are planning on leaving assets, cash or investments to someone in your will or contemplating making a gift, we would advise that you taken qualified financial advice prior to doing so. In all instances, Eugene will advise you on the best course of action to take to reduce tax liabilities and ensure no financial burden is put on the recipient.

Planning for the future should be priority for all those who wish to leave something for the next generation. Speak with Eugene today or arrange a consultation by calling (047) 82000 or emailing eugene@eodfinancial.ie.

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