Amount of inheritance tax due?

[CLOON14]

Hello,
my grandfather passed away 20 years ago and willed his house to my grandmother for her day (she passed away 16 years ago) and then it was to be left to me. I did not realise but the property is still in my grandmother's name. As far as my parents can remember inheritance tax was not paid. I have not approched the solicitor who holds the deeds and will yet. The property was worth ~€35,000 20 years ago, and is worth ~€135,000 now. Could you tell me what inheritance tax would be expected now.

 

[John Rambo]

You should speak to the solicitor and get professional advice yourself. This sounds very odd...who was the executor? How was it left to you without knowing? Did your parents try and stitch you up? Did your grandmother have a will? 'supposed to be left to me' isn't 'was left to me'. Perhaps it passing to your parents and then to you would be the most tax efficient way. Again, you should get professional advice.

 

[CLOON14]

Nothing as clock and dagger as that, I was 14 when my grandfather passed away. My grandmother was ill for her remaining years and did not make a will because the house was already willed to me. The house is old (>150 years old) and I have used it for family use, various family members have used it over the years, rent free. Im now in a position where I could do with selling the property but would like to know what inheritance I would have to pay.

 

[John Rambo]

You should get professional advice. I'm not sure whether your grandfather could do that...leave it to your grandmother and specify it should then be left to you. Did your grandmother have a will? 16 years ago the threshold for grandparent to grandchild was approx €28,000 if that's any help.

 

[mathepac]

...I'm not sure whether your grandfather could do that...

I don't see how this could work either. Unless your late Grandmother left a will specifically leaving the property to you, you need legal advice soonest and I suspect you may be disappointed with the advice you receive.

 

[oilpainting]

hi yes the same thing happened to me... my grandad left his house to my grandmother for the term of her life and then to me and my sister,after she passed....we were liable for inheritance tax of around 96,000 each! becasue we are grandchildren and the house sold for 1mil.... i was told we didnt have to pay the tax if we had of had our names down on the house 3yrs prior to my granny dieing as technically we hadnt inherited it... but we didnt make that criteria as she passed away... it is unusual that the deeds were not vested into your name after your grandmothers death,a grandchild can inherit 42,000 there and around without having to pay tax,then 20% of the rest is what you will have to pay.... they will charge you on the date of your grandmothers death,as that is the day you inherited it.....so find out what it was worth on that day and take 42,000 away and 20% of the remainder.... hopefully that makes sense..... there is info on the revenue site http://www.revenue.ie/ -from the date of probate passing we legally only had 4months to pay the tax and there after we have to pay i think it was 1% a day-interest......im suprised that the revenue were not after it,but i do not know the particulars and im sure your solicitor will advise accordingly,this is my situation anyways and hope it may be of some help...xx

 

[Nige]

I don't see how this could work either. Unless your late Grandmother left a will specifically leaving the property to you, you need legal advice soonest and I suspect you may be disappointed with the advice you receive.

His grandfather could do this. Leaving property to a person only for their life and then the remainder to another party is common in Ireland. However, his grandmother, should she have wished, could have insisted on her legal right share and this may have reduced the OP's inheritance. However, it sounds as if she did not do that.

The capital acquisitions tax (CAT) payable is based on the value of the house when his grandmother died, not the current value. However, depending on when he became entitled in possession to the property, there may be substantial interest due.

Talk to your solicitor first to get a copy of the will and then work with your solicitor and accountant to sort out the tax and get the property registered into your name.