January 9, 2020
Why you should make a Will
There is a common misconception that there is little or no merit in making a Will and it is easier to leave it to the laws of intestacy to decide...
Inheritance tax is charged on gifts or inheritances in Ireland.
Unlike other countries, Ireland places the tax liability on the beneficiary and not on the estate. As inheritance tax rates in Ireland are one of the highest in Europe, it is extremely important that you engage the services of a professional to ensure you manage your estate in a tax efficient manner in order to avail of any tax reliefs available which will limit the tax liability of the intended beneficiary.
Our private client department has the creativity, intelligence, and knowledge of domestic Law to advise on even the most complex wealth, property, and asset structures.
The current rate of Capital Acquisition Tax (CAT), also known as Inheritance Tax or Gift Tax, is 33% on all gifts or inheritances which exceed your tax free threshold.
Some inheritances or gifts are tax-free; there are three different thresholds depending on the relationship between the recipient and the donor, as follows:
Group A: a tax-free threshold of €320,000 which applies where the beneficiary is a:
Group B: a tax-free threshold of €32,500 which applies where the beneficiary is a:
Group C: In all other cases the tax-free threshold is €16,250.
The following can be subject to CAT:
Inheritance tax is not payable on a gift or inheritance if it is:
Inheritance and gift tax relief is available certain circumstances. Our solicitors will assist you in identifying any opportunities to avail of such reliefs and exemptions and will provide expert advice to you drafting your will in a tax efficient manner.
For further information regarding inheritance tax in Ireland, please contact Lavelle Partners in confidence on (01) 644 5800.
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