Calculation of inheritance tax

[legal33]

Hi,

If an Estate is valued at €175K at date of death, and the nursing home Fair Deal Scheme is owed €75K from the Estate, is inheritance tax payable at 33% on the €175K or €100K ?

No spouse involved. CAT thresholds have been previously exceeded

Thanks,

 

[jpd]

The net value of the estate is what is distriibuted - all monies owed have to be paid out first.

Tax is not paid by the estate but by the recipients

 

[Thirsty]

Hi,

If an Estate is valued at €175K at date of death, and the nursing home Fair Deal Scheme is owed €75K from the Estate, is inheritance tax payable at 33% on the €175K or €100K ?

No spouse involved. CAT thresholds have been previously exceeded

Thanks,

Inheritance tax is payable on net amount, after all debts and expenses (incl fair deal) are paid.

The CAT is payable by beneficiary and so net amount is paid over; unless beneficiary is resident outside the state in which case Exec may retain cash to the value of tax due pending confirmation that tax is paid.

In practical terms that could mean exec wld pay tax from overseas beneficiary's portion & pass on the remainder. Otherwise Exec is on the hook for the tax.