Capital Acquisitions Tax Uncle to my wife

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FredBloggs

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A batchelor uncle of mine is drawing up his will and is proposing to leave me a sum of money of about €100K.
Am I right in saying that with indexation the 2008 relief for uncle to nephew should be circa €50K?
If he leaves €25K (of the €100K which he intends leaving to me) to my wife would she be able to take this tax free?
Thanks for your help
 
Yes, 2007 thresholds are

Category B : Uncle -> nephew € 49,682
Category C : Uncle -> other half € 24,841

not sure about 2008 values.

Note : inheritences from all sources since Dec 1991 are aggregated when applying the threshold, so if you or your wife have received prior inheritences from donors in the same category, you will have to check further before
 
Thanks JPD. I figured that the 2008 and later thresholds will be above €50K and €25K so thats what I based my figures on.
Wasn't sure if the proposed inheritance by my wife would be aggregated with mine for tax purposes
 
What you should also do is get your uncle to gift C.€3,000 to each of your children, if you have any. The €3,000 mentioned is tax free under CAT
 
Iceman732 said:
What you should also do is get your uncle to gift C.€3,000 to each of your children, if you have any. The €3,000 mentioned is tax free under CAT
Click to expand...

He could, in fact, gift €3,000 to each of you in a year without eroding your thresholds, so , hoping that he has many more years to come, he could pass quite a bit of the intended inheritance by way of gifts while he is still alive.
 
Graham,

That was what I was trying to suggest. What he could in fact do is gift money to several people, who in turn gift money to Fredbloogs.
 
Iceman732 said:
Graham,

That was what I was trying to suggest. What he could in fact do is gift money to several people, who in turn gift money to Fredbloogs.
Click to expand...

that doesn't work if the second gift is made within two years.
 
Pardon Nige, perhaps you could clarify.

The example below can't take place

A - Main person gifting money.

A gifts €3,000 to B
A gifts €3,000 to C, who gifts €2,999 to B
A gifts €3,000 to D, who gifts €2,999 to B

on the list goes on.......
 
In your example, the €2,999 of the gift from A to C, will be deemed to be made from A to B, and thereby eat into B's threshold. Similarily, the €2,999 from A to D, which is passed onto B, will also be treated as if it were from A to B directly.
 
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