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CAT interest free loan

JansheerKahn · 2020-03-11 18:42:50

Say a parent gives a child €500k interest only loan with an interest rate of 0%. I know the CAT small gift exemption will cover annually. When the parent dies say all assets left to child - this would include the loan. As the child becomes the owner of all assets what is the tax treatment of the loan?

11-03-2020 6:42pm

#1

JansheerKahn

Registered Users, Registered Users 2 Posts: 44 ✭

Join Date: February 2019

Posts: 14

Say a parent gives a child €500k interest only loan with an interest rate of 0%.
I know the CAT small gift exemption will cover annually.

When the parent dies say all assets left to child - this would include the loan. As the child becomes the owner of all assets what is the tax treatment of the loan?

0

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#2 11-03-2020 6:54pm

thegolfer

Registered Users, Registered Users 2 Posts: 346 ✭✭

Join Date: March 2008

Posts: 343

JansheerKahn wrote: »

Say a parent gives a child €500k interest only loan with an interest rate of 0%.
I know the CAT small gift exemption will cover annually.

When the parent dies say all assets left to child - this would include the loan. As the child becomes the owner of all assets what is the tax treatment of the loan?

An inheritance to you, or you repay the estate, and then get a portion of the monies per the will.

0