Tax burdens for leaving the estate to my family in a will.

nudedragon

If I leave my estate to my wife in the Will, I understand that she will receive this tax free. What I want to know is there implications for her then if she later on leaves it in her will to our children?

Or is it just the same scenario that would exist if I were alive and transferred it to them myself?

I have gone through the calculations, seems the kids would be caught for a fair whack. Is there a way one can utilise a "trust fund" to help out here??

Geuze

Have you read about CAT?

https://www.revenue.ie/en/gains-gifts-and-inheritance/gift-and-inheritance-tax-cat/index.aspx

Geuze

https://www.boards.ie/discussion/2058356486/tax-burdens-for-leaving-the-estate-to-my-family-in-a-will

There are no implications for your wife, as she will be dead.

The dead can't pay tax.

The children may have to pay CAT.

SureYWouldntYa

Trust funds aren't tax efficient in Ireland, they can be in the USA hence the common reference to them in tv shows and movies

You may need to talk to a tax advisor, if you've looked at the CAT A thresholds available to your children and think they will still have a large liability then they can advise on the best way to plan and allocate assets, setting up a section 72 life policy etc.

Transfers in life and death will generally end up around the same, you will get the €3k annual exemption if gifted in lifetime but not on an inheritance, but stamp duty applies on a transfer during your lifetime but not upon death