Inheritance and adult 'step-child'

rock22

i have checked the Revenue site and it appears that a step child cannot be treated as a child unless they were formally adopted. Is this correct.

In this case :-
The couple never married and each had a child before the relationship. The relationship was never registered in any way but the 'family' treated both children equally.

A number of years later the parents 'separate' when both children were adults.

It appears that neither child can inherit from the non-blood related parent. Is this correct?

And if so, is there any way it can be regulated ( by adult adoption?) now?

Thanks for help with this

schemingbohemia

Of course they can still inherit if included in the will but it would seem they have no inherent rights to any inheritance.

rock22

Sorry, I should have made it clear.
A child can inherent up to €225000 without paying inheritance tax. It seems that this does not extend to a step child in this circumstance. The tax would be levied at 30% I think

What I wondered was if it was possible to regularise the adoption now?

Pro Hoc Vice

"Group A
The group A threshold applies where the beneficiary is -
A child, or a minor child of a deceased child of the disponer (minor means under the age of 18 years). The term "child" includes a stepchild or an adopted child (under the Adoption Act 2010), and a child of a civil partner. A child of a civil partner means a child of the individual's civil partner who was born before the registration of their civil partnership or during their civil partnership."

From http://www.revenue.ie/en/tax/cat/leaflets/ca25/inheritance-tax.html

A good probate solicitor will be able to answer your question clearly.

schemingbohemia

How can they be adopted if the relationship has ended?

Sala

They are treated as a child for tax purposes as stated. So instead of saying in a will that estate is left to children, which will leave stepchild out, name them individually.

Peregrinus

Sala wrote: »

They are treated as a child for tax purposes as stated.

No. From the OP it appears that the couple never married (or entered into a civil partnership), so A's child is not B's stepchild, nor vice versa.

A and B cannot adopt one another's children and, iven if they did, that would solve one problem but create several others. They can marry or enter into a civil partnership and that would solve the problem, but as they have separated they presumably don't want to do that. (Plus, there's the theoretical risk that the Revenue would challenge the marriage as a sham, which arguably at this point it would be.)

A and B should talk to a solicitor, accountant or tax consultant about whether there is any disposition or arrangement of their respective properties that they can enter into now, so as to minimise adverse CAT consequences on their deaths. But I don't see any practical way in which they can solve the problem by having one another's children treated as their own children for CAT purposes.