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Inheritance Tax

  • 18-11-2022 7:04pm
    #1
    Dwarf.Shortage
    Registered Users, Registered Users 2 Posts: 1,405 ✭✭✭


    Hi,

    My mother who is in her early eighties has started to discuss the plan for the day she is no longer with us and her desire not to leave a big tax bill behind her. I have done as much research as I can online, just wondering if anyone knows the answer to these three questions, I am aware they aren't exactly low hanging fruit so if I have to go pay a tax specialist so be it.

    1. My father passed years ago and gave my mother 2/3s of the house, my two brothers and I were given 1/9 each. My brother subsequently died and when this happened my mother transferred her share to us so we are now 50/50, house is worth about 150k. How is this treated, is it completely out of the question to assume my mother gave us her share over a number of years and avail of the €3k p.a. allowance? She was talking about giving it to us from the day she inherited her share but the paperwork was only done years later on my brothers death, I assume it has to be taken as a gift of 1/3 of its market value at that time (each) coming out of her 335k?
    2. Her own house is worth around €800k. There are nine grandkids she wants to give the maximum 32.5k each but she will not have enough cash to pay this on her death. Is there a way for the house to be left to my brother and I and for the kids to inherit 32.5 from the estate without them having a share in the house? We would rather pay them out as they turn 18 or 21 than have a large number of people with legally held shares in the house, three brothers holding Wexford was difficult enough at times let alone splitting one 11 ways. The dream would be for us to inherit the house and have the 9x32.5k obligations to the grandkids netted off the value of our inheritance for CAT purposes but again I don't know if this is allowable.
    3. We would also be happy to put the 32.5k in trust immediately for them but we have heard this is not tax advantageous and there can be tax implications for the executor/trustee. Sorry that point is very vague a solicitor explained it to me quite a while back and I don't remember the finer points.

    Thanks in advance

    Dwarf Shortage



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