Inheriting a House from Parents in a Will

pprendeville

Have a few questions about this based on what I heard on the radio this week.

So my understanding is if you inherit your parents house you have to pay 33% of the value. Is this correct.

Dos this still apply if you are living there or do you need to be living there for a minimum period of time.

Is there a way of avoiding this type of inheritance tax?

Whee would be a good place to find out this type of info online?

Princess Calla

Revenue website is very good.

No, you do not pay 33% on the value of the house.

As you are a child of person giving the inheritance you are classed in threshold A which gives you a sizable tax free allowance, you are taxed 33% on the difference of that and value of the house. Any other assets will also be included, so entire estate.

There is an allowance if you are living in the house at time of death but there are clauses around it, again revenue website will have the info.

There is a (I think) section 76 policy you can take out. However if the estate is that large you feel you need to do that, go talk to an accountant that specialises in this area (not being smart).

mondeoman72

im facing this situation so have a little info.

You can inherit 335k tax free from your parent. Any surplus is taxed at 33%. An accountant friend tells me there is a way to limit tax liability if any is farmland. Get proper advice.

pprendeville

Thanks v much. Will go to solicitor and fine out.

Atlantic Dawn

If you are permanently living in their house 3 years prior to their death you can get an exemption to any tax. You can't have another house in your name to qualify.

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-exemptions/dwelling-house/index.aspx

Geuze

Please read this:

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

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

Google "Dwelling House Relief" if you want to inherit the property tax free.

Otherwise, assuming you've received no prior gifts or inheritances from your parents, you have a tax free threshold of €335,000. You will pay 33% CAT on the valuation above that amount.

The €335k is not per parent, it's a total tax free threshold for you as the beneficiary.