Inheritance/Gift Tax

My father is about to move into private sheltered housing but wants to bequeath his apartment worth about Euro350,000 to his three children before doing so. What are the tax implications for us, is there Inheritance Tax or Gift Tax? Also, if we decide to rent out the apartment in order to provide a monthly income for my father, are there any tax implications there?

If he bequeaths apt to you and two others you are under the threshold for Gift Tax/Inheritance tax - even so you must still declare same to Revenue. If you rent out the property you will be liable to tax on profit made.

Your father could also be liable to CGT for a deemed disposal. If this has been his principal private residence throughout the period he owned the apartment then no CGT arises.

In relation to Inheritance/gift tax the following applies:
Surviving Spouse
If you are a surviving spouse taking an inheritance from your deceased spouse, the inheritance is completely exempt and, no matter how valuable, will not be liable to Inheritance Tax.

Other Beneficiaries


In the case of other beneficiaries, whether or not Inheritance Tax may be payable on your inheritance depends on whether:

• the total value of all gifts and inheritances
• received by you - the beneficiary
• from the deceased and from anybody else to whom the same group threshold applies
• in the period from 5th December 1991 up to (and including) the date of the inheritance exceeds a tax-free element called the "tax-free amount".

If you don't declare a gift/inheritance as an "other beneficiary" to Revenue how would Revenue know that the amounts received by you fall into the thresholds as outlined in bullet point four. If gift/inheritance was received from brother and then subsequent gift received from another brother/sister you may exceed your threshold.