Inheritance advice - sons live in different countries

We are reviewing our finances with regards to inheritance planning.

We are married, in our 50s, with 2 adult sons (age 20 and 23). One lives and works in England, though still an Irish citizen.

So far...
- Savings: 475k (deposits mostly, 460k, and a Std Life Moneyworks Bond [15k]
- Mortgage - 22k balance, 3 years remaining
- My Pension pot total - 350k. (One is a PRSA (current) and 2x Buyout Bonds from previous employments' pensions)
- My wife works with a Local Authority and would get a public servants pension.
- Family Home, currently worth about 520k
- I also have Death in Service Insurance with my employer, worth about 200k

We'll probably use 30k for house improvements.

What is the best way to minimize any tax for my sons when they inherit?

Given that the eldest son lives in England, what would be the tax implications for him?

Thanks!

redstar said:

What is the best way to minimize any tax for my sons when they inherit?

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First maximise the inheritance!

Pay off your mortgage asap from bank deposits. Then put as much as possible into PRSA to take advantage of tax-relieved limits for your age.

You can give up to €3k per annum (you and wife each) to each son without any Irish CAT implications. Not sure what the rules are for someone UK-resident.

redstar said:

We are married, in our 50s, with 2 adult sons (age 20 and 23). One lives and works in England

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Unless you have some illness issues which reduce your life expectancy, just plan your own finances and let the inheritance look after itself in 40 years.

If you have good incomes and no mortgage, then you might want to use your savings to help your children get on the housing ladder in the next few years. They will probably be in their 60s when you kick the bucket and may well be financially independent by then and so gain little benefit from an inheritance.

Brendan

I am assuming the one living and working in the UK has an Irish bank account? So give each child €3K each per year from both you and your spouse, (total cost €12k per annum). It will take you 38 years to give them the €460K in cash). They can receive €3K each from any relative tax free per annum.

Otherwise live your life and plan for your own retirement and enjoy your money.

And pay off your mortgage and maximise savings into your pension

So we'll....
1. pay off the mortgage (22k-ish)
2. Maximise the annual 3k tax-free gift from each of us to both sons (not sure what the UK rules are - my son only has a UK bank account)
3. I never thought of maximising my PRSA from savings. I'll try that.

Finally, we plan to make a will in a couple of weeks time. Procrastination over !

Thanks for the advice, all !