Inheritance Tax?

PopIT

Anybody hear anything on inheritance tax?

seamus

The thresholds have been dropped by 20% as of today.

Group A: €304,775. This applies to a child, a step child, a foster child in certain circumstances and to a grandchild under the age of 18 of the disponer whose parent is dead. It also applies to a parent who takes an immediate (not a life interest) inheritance on the death of a child.

Group B: €30,478. Included in this class are brothers, sisters, nephews and nieces, grandchildren and great grandchildren.

Class C: €15,239. This applies to a successor who does not come under Class A or B.

PopIT

Thanks for that.

So say a family of eight brothers and sisters sell a deceased parents house and it sells for €200,000. Would I be right in assuming that there would be no inheritance tax to be paid on this?

Thanks for your help,

murphaph

My father died three years ago and his estate is still in probate (for genuine reasons). Will myself and my brother have to pay the new rates or the rates when my father passed away/revenue cert was received?

DWCommuter

PopIT wrote: »

Thanks for that.

So say a family of eight brothers and sisters sell a deceased parents house and it sells for €200,000. Would I be right in assuming that there would be no inheritance tax to be paid on this?

Thanks for your help,

That would be correct.

DWCommuter

murphaph wrote: »

My father died three years ago and his estate is still in probate (for genuine reasons). Will myself and my brother have to pay the new rates or the rates when my father passed away/revenue cert was received?

If the estate is still in probate, then it hasn't been distributed so technically you and your brother havent taken possession. This would suggest that you will pay the new rate when the estate is out of probate.

PopIT

DWCommuter wrote: »

That would be correct.

A little bit of good news at least. Thanks.

SIMPLYTHE

DWCommuter wrote: »

That would be correct.

Mostly (and in this case, probably) true...However, if any/all of the children have already received a gift/inheritance from said deceased parent/s over the value of the new Class A threshold (amount listed above), they shall be taxed on the amount exceeding same.

Permabear

This post has been deleted.

DWCommuter

SIMPLYTHE wrote: »

Mostly (and in this case, probably) true...However, if any/all of the children have already received a gift/inheritance from said deceased parent/s over the value of the new Class A threshold (amount listed above), they shall be taxed on the amount exceeding same.

Quite correct. I neglected to mention that bit.

Sigi

Is inheritance tax on the individual or the overall fee. eg: if 600'000 is split between 3 children,do they pay tax on it?

fliball123

Does any one have any documentation on inheritance if the parent is still allive?

jdooley28

Sigi wrote: »

Is inheritance tax on the individual or the overall fee. eg: if 600'000 is split between 3 children,do they pay tax on it?

Its on the individual so in case 600k split 3 ways 2ook would be under the threshold, assuming the have not have had any other inheritances

seamus

fliball123 wrote: »

Does any one have any documentation on inheritance if the parent is still allive?

Handing over inheritance before death is treated as a gift and as such is subject to gift tax.

The thresholds are the same as for inheritance.

donegal11

As a gift the the giver may be liable for capital gains tax.

P. Breathnach

Those who want to understand how things work should dig into this site: http://www.revenue.ie/en/tax/cat/index.html

It does not seem to have been updated for the 2011 Budget, but seamus's post above tells us the changes.

Tax liability is computed on the basis that the inheritance accrues at the date of death, and whatever exemptions were in force on that date are applicable.

tommycahir

Can somebody clarify for me if the inheritance tax on the difference classes\groups is assessed independently?
e.g if there was €28,000 previously inherited from group B and then another €10,000 were to be inherited in group A would these both be assessed together as a total inheritance and if so under what group would the taxation fall?

Regards
Tommy

seamus

Each grouping is treated differently for inheritance tax. In the case you give above, you will be assessed on two inheritances - one in group B and one in group A.

You're right though that the exemption limits are lifetime limits and the thresholds dictate the maximum amount of tax-free inheritance you can take in each group within your lifetime.

tommycahir

Thanks Seamus. That takes some pressure off my mind for the moment anyway.

Mayo Exile

seamus wrote: »

The thresholds have been dropped by 20% as of today.

Group A: €304,775. This applies to a child, a step child, a foster child in certain circumstances and to a grandchild under the age of 18 of the disponer whose parent is dead. It also applies to a parent who takes an immediate (not a life interest) inheritance on the death of a child.

Group B: €30,478. Included in this class are brothers, sisters, nephews and nieces, grandchildren and great grandchildren.

Class C: €15,239. This applies to a successor who does not come under Class A or B.

Site has been updated. Thresholds are:

On or after 08/12/2010

Group A
(Son/Daughter) €332,084


Group B
(Parent*/Brother/Sister/Niece/Nephew/Grandchild) €33,208

Group C
(Relationship other that at A/B) €16,604

P. Breathnach

Mayo Exile wrote: »

Site has been updated....

That's respectably fast -- not what some people expect from a public service body.