Inheritance tax

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So, say my parents have a house for each child they have. If they pass away and left these houses to their children, what would be the tax on it? Taking into account that all houses are paid for and that all children are over the age of 18. Something I wondered about but don't know too much about it.

(This the right place for this mods?)

Amalgam

http://www.revenue.ie/en/personal/circumstances/bereavement/inheritance-tax.html

http://www.revenue.ie/en/tax/cat/leaflets/cat2.html

The situation\amount due changes if you're living in the house for a minimum amount of time (3 years?) prior to the death of the parents\owner.

Sangre

Each child will get about 520,000e tax allowance, assuming no prior benefits. The rest will be taxed at 22%. This will need to be paid in four months of receiving the house. This often requires a remortgaging of the house.

So if the house was about 800,000 you'd pay about 61k in capital acquisitions tax.

If you've been living there for 3 years before death you're entitled to dwelling house relief. This relief is total but you can't have any ownership in any other property. It also prevents you from selling the house for a certain number of years after or there will be tax clawback.

chillywilly

Sangre wrote: »

Each child will get about 520,000e tax allowance, assuming no prior benefits. The rest will be taxed at 22%. This will need to be paid in four months of receiving the house. This often requires a remortgaging of the house.

So if the house was about 800,000 you'd pay about 61k in capital acquisitions tax.

If you've been living there for 3 years before death you're entitled to dwelling house relief. This relief is total but you can't have any ownership in any other property. It also prevents you from selling the house for a certain number of years after or there will be tax clawback.

what a kick in the ****ing teeth.:mad: if they dont get you when your alive, they'll get you when your dead.......or your relatives.

My Father went though an inheritance issue a couple of years back, the land hand been in the family since roughly 1860. After solicitors fees, greedy relatives and the unbelievable inheritance tax he was left with far from market value for the land. Aint that a kick in the head!

EC1000

Hence the importance of making a will with a professional. A couple of hundred quid today can allow you make adequate tax planning in advance to avoid (not evade!) this kind of nuisance.

Sangre

chillywilly wrote: »

what a kick in the ****ing teeth.:mad: if they dont get you when your alive, they'll get you when your dead.......or your relatives.

My Father went though an inheritance issue a couple of years back, the land hand been in the family since roughly 1860. After solicitors fees, greedy relatives and the unbelievable inheritance tax he was left with far from market value for the land. Aint that a kick in the head!

I just told him how to completely avoid paying any tax.

A good will will avoid the trouble of greedy relatives and will also avail of the maximum reliefs available.