Inheritance tax Question

sarabroderick

I am due to inherit approx 50k from my uncle and so understand the following to be my liability?

50,000
less threshold €30,150.00
leaving a taxable amount of €19,850
and so I pay €6550.50

my question is how do I factor in the receipted costs I have in relation to
the funeral
tax return for deceased (accountant fee)
legal fee for handling probate
fees relating to clearing the house, removal, skip, death registration fees etc?

I am going to engage an accounts but was looking for an idea as to how to approach this?

Mr. Incognito

Speak to a solicitor

sarabroderick

actually in this case the solicitor is not willing to discuss the tax return and has referred me to an accountant who i am meeting next week I was just looking to do a back of the beermat calculation

Maidhci

The information you provide here is not complete and therefore your solicitor is obviously the best person to advise you.

Normally, costs as outlined by you are set out as liabilities that will be paid from the estate and the balance remaining is the amount available to be distributed and in respect of which CAT, if applicable, is payable by the various beneficiaries.

dricko_lim

The first €3k is exempt also as you can gift €3k tax free in any given year so your only taxed on 16,850 @ 33%

nompere

dricko_lim wrote: »

The first €3k is exempt also as you can gift €3k tax free in any given year so your only taxed on 16,850 @ 33%

That only applies to gifts - not inheritances.

Tow

Mr. Incognito wrote: »

Speak to a solicitor

That's the worse thing you can do. I have seen some huge '#8* with solicitors handling inheritance tax, and I am not talking about small one man practices either... A good accountant would be better. In any event always ask for a costs up front.

Basically you deducts all the costs from the estate first and then the beneficiaries get what ever is left over. You maths are fine, providing you have never received any CAT (Gifts or Inheritance) before in your life. It you have they are also taken to account and the calculations gets more complex.

You could download the 'ROS Offline' app and (electronic) form IT38 if you want to play around with the calculations.

2ndcoming

In my experience solicitors in general stick to the legal side of things and have little or no interest in touching anything tax related, particularly in death cases.