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Inherirance tax...can a couple be taxed on 2nd inheritance ?

  • 12-03-2009 2:21pm
    #1
    jimmmy
    Closed Accounts Posts: 2,539 ✭✭✭


    Suppose a couple inherit property worth 200,000 euro from one set of parents who pass away....and years later they are lucky enough to inherit 400,000 from a parent on the other side of the family. I know the tax free limit is about 500,000 or 520,000....does this mean they pay tax on the balance of 80,000 or 100,000 ? ( or is the roughly 500k limit per set of parents, if you know what I mean ?)

    Thanks in advance


Comments

  • #2
    grumpytrousers
    Registered Users, Registered Users 2 Posts: 1,884 ✭✭✭grumpytrousers


    Short answer is definitely yes. Prior gifts can count, but it depends on who exactly did the donating and who exactly did the recieving.

    I had a more fulsome answer to this ready to roll, but I'm not sure it's wise to give it here. You'd be as well off to talk to somebody, outlining specificially your concerns and, if you don't mind me saying, paying for the privelage. There's a few issues that need to be looked at, and trying to tease out the issue without veering into 'advice' territory is tricky.


  • #3
    grumpytrousers
    Registered Users, Registered Users 2 Posts: 1,884 ✭✭✭grumpytrousers


    the reason i'd suggest the OP go talk to somebody is that it's rather vague in that he says "a couple inherit property worth ..."

    Parent to child is one thing. Parent to child AND son/daughter in law is another...if son/daughter in law has used up their threshold already, etc etc etc.


  • #4
    Sangre
    Registered Users, Registered Users 2 Posts: 12,186 ✭✭✭✭Sangre


    very much depends on facts.

    was original gift by one set to their own blood child?
    was the second gift by the other parents to their own child as well?
    i.e did the man get a house from his parents and the woman a gift from hers.

    Each will have a threshold of roughly 540k for each of their parents for each transaction, totalling over 1million if the houses only went to the children.

    The matter then arises of how couple put the houses in joint names if they choose to. The issue of gift tax will arise. Although it is greatly helped if they are married as they will get it tax free, though I think they may have to wait a few years to comply with anti avoidance legislation.

    Put a big asterik over everything I said, nothing 100%. All depends on facts.

    edit - prior benefits if from the same threshold will count. a gift from your parent and your parents in law don't fall into the same threshold group. Former has 540k the latter a 27k threshold afaik.


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