CAT on grandparents inheritance

[Cathouse]

My mother passed away before her parents. Consequently my grandparents left my mums share of their assets (half) between her children equally (us)

We are liable to CAT after €32500 is there any way to accept it in Cat A band? As in had my mother received it no tax would be paid? And passed it to us no tax liability?

Thanks for help

 

[Zobeda]

Did the relevant grandparent will pre-date your late mother's death?

If not I suspect the answer to your question is no, but I am not a lawyer.

 

[Cathouse]

Did the relevant grandparent will pre-date your late mother's death?

If not I suspect the answer to your question is no, but I am not a lawyer.

No it didn’t. Thanks.

 

[Brendan Burgess]

I think that if any of the children are under 18 at the time of the inheritance they get the parent's CAT threshold.

I am not a tax expert.

Brendan

 

[Brendan Burgess]

OK, here is the relevant section

CAT groups and group thresholds

This page explains thresholds, rates and aggregation rules for calculating Capital Acquisitions Tax

www.revenue.ie

Group A​

The Group A threshold applies where you, the beneficiary, on the date of the gift or inheritance are:

a minor child, under 18 years of age, of a deceased child of:

• the disponer

So
Beneficiary is grandchild
is a child of a deceased child of the granny.

So you meet that criterion.
Anyone 17 or under gets Group A

Brendan

 

[T McGibney]

CAT predominantly affects people whose parents die young. It is perhaps the most unjust and iniquitous of taxes.

 

[Cathouse]

OK, here is the relevant section

CAT groups and group thresholds

This page explains thresholds, rates and aggregation rules for calculating Capital Acquisitions Tax

www.revenue.ie

Group A​

The Group A threshold applies where you, the beneficiary, on the date of the gift or inheritance are:

a minor child, under 18 years of age, of a deceased child of:

• the disponer

So
Beneficiary is grandchild
is a child of a deceased child of the granny.

So you meet that criterion.
Anyone 17 or under gets Group A

Brendan

Thank you

 

[Dr Strangelove]

CAT predominantly affects people whose parents die young.

Don’t younger people tend to have less wealth to bequeath?

 

[T McGibney]

Don’t younger people tend to have less wealth to bequeath?

The issue is not so much with the deceased but with their survivors.

If you're lucky and don't lose your second surviving parent until say, you're 60, you'll probably have sufficient spare resources to cover a normal CAT bill. This is unlikely to be the case if that misfortune happens you at half or a third of that age.

And a person in the first category will normally to some extent have been financially assisted, directly or indirectly, by at least one parent, for decades, without any CAT implications.