Inheritance Question

Hi;
My brother in law and his wife are joint owners of their family home. Now he is going to be left a share of his family's farm in a will.
Am I right in saying that he should get the house signed fully into his wife's name to avoid a hefty inheritance bill?

Thx
B

No as it has no effect on any potential taxes resulting from his inheritance.

The correct answer here would be 'maybe'. He should get detailed case-specific advice.

At the moment your brother in law can inherit up to €521,208 tax free from a parent.

Agricultural Relief can be used to reduce the value of his portion of the estate by 90% for qualifying agricultural assets provided that after taking his inheritance 80% of your brother in laws assets are deemed agricultural.

In determining your brother in laws worth for this purpose, he can now offset the outstanding mortgage debt on the family home.

I think you are referring to the agricultural relief available under the capital Acquisitions tax provisions.

If a 'farmer' is domiciled in the state and 80% or more of the market value of the property to which he is beneficially entitled consistes of agricultural property then he is entitled to agricultural relief

To take advantage of these provisions it might be advisable to hold some agricultural property or make sure that he does not hold non-agricultural property.

Im not so sure that its possible to qualify by signing his house over to his wife

Thanks Guys - appreciate your advice, time for him to contact his solicitor

Or he could buy stock etc to increase his agricultural assets.

There would be a clawback on the relief is they decided to sells the farm within a certain timeframe.

Tom