Inheritance Tax Q&A: Get Answers To Your Most Pressing Questions About Protecting Your Family’s Inheritance

Inheritance Tax

Inheritance Tax Q&A: Get Answers To Your Most Pressing Questions About Protecting Your Family’s Inheritance

As a responsible parent, you want to leave a lasting legacy for your children without the burden of hefty tax inheritance. However, navigating the complexities of inheritance tax in Ireland – without in-depth tax knowledge can feel like walking on thin ice. If you want inheritance tax advice in Ireland, our expert team can help you through this maze of intricacies.

In this blog, we will address the most pressing issue about Inheritance Tax Ireland so that you know you’re leaving behind a positive financial legacy.

What is Capital Acquisitions Tax?

Capital Acquisitions Tax (CAT), also known as Inheritance Tax Ireland, is the tax that is levied on assets, properties, and gifts – if they exceed the threshold of tax-free inheritance.

This means that you can save yourself from CAT if you receive gifts or inheritance up to a certain value before CAT applies.

How Much Inheritance Tax Ireland Will My Children Potentially Face?

The current standard rate of Inheritance Tax in Ireland is 33%.

However this rate depends on the value of your estate, gift and inheritance and your relationship you have with the beneficiary (the person receiving the gift or inheritance).

If it is below the tax-free threshold, you don’t have to worry about inheritance tax or gift tax. But if it is above the inheritance tax threshold, you should seek legal advice on family inheritance for planning the inheritance in a better way so that your children don’t have to face the burden of paying taxes on their inheritance. Understanding these nuances will help in better succession planning.

Are There Ways For Tax-Efficient Wealth Transfer?

Yes, there are various strategies like utilising a tax-free threshold, lifetime gifting and personalised policies to ensure a tax-efficient wealth transfer. Get in touch with our experts to explore these options and receive your personalised inheritance tax Advice in Ireland.

What Are The Tax-Free Thresholds For Wealth Transfer?

As mentioned earlier, the amount of CAT payable depends on the relationship between the benefactor (the person transferring the inheritance) and the beneficiary (the person receiving the inheritance). There are three relationship groups:

  • Group A (Child, including step, adopted or foster children): €335,000
  • Group B ((Lineal ancestor/descendant, sibling, nieces, nephews or child of a sibling):€32,500
  • Group C (In all other cases): €16,250 

What Is Gift Splitting?

In case a gift is passed onto another person within three years of receiving the gift, it is called gift splitting. It can affect the threshold used.

For example, If a mother leaves her with €45000 in January and the daughter in turn gifts this €45000 to his son within three years – this would imply that the son has received the gift from his Grandmother and not his mother. In this case, the Group B tax-free threshold will be applied, not Group A.

I Am Extremely Worried About The Complexities of Inheritance Tax. Do I Need A Legal Solicitor To Handle Inheritance Planning?

A legal solicitor surely helps you with the legalities of estate planning Ireland. If you want to ensure a tax-efficient wealth transfer, get in touch with our team and get your curated, personalised inheritance tax advice in Ireland.

What Happens If I Don’t Plan For Inheritance Tax In Ireland?

Inefficient inheritance tax planning will lead to a higher tax burden on the beneficiary, reduced inheritance amount, and create unexpected financial strains on your loved ones, which will eventually lead to unnecessary stress and cost your beneficiaries in the long run.

Reduce Tax Burden With Strategic Inheritance Tax Advice In Ireland

Remember, you are not alone in this journey. Money Maximising Advisors Limited are here to answer your questions, address your queries and develop a tax-efficient plan to protect your family and your loved ones.

Get in touch with our expert team to discuss your specific situation and explore inheritance tax planning strategies.

Talk to us at +353 91 393 125

Mail us at

Visit our office at Unit 3, Office 6, Liosban Business Park, Tuam Rd, Galway, Ireland

Related Terms- Inheritance Tax Advice In Ireland: Where Can I Get Advice on Inheritance Tax?

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