Inheritance Tax Groups

[casperjack]

Hi my grandmother passed away last year and myself and my mam were left a share of her house, the solicitor dealing with her will/estate wrote to us and he advised my mam that she is group c and that I am group a. I thought I would have been group b but they said I now fall into group a as my father predeceased my grandmother.

My question is as my father predeceased his mother could my mother fall into group a instead of group c, as when looking at the it 39 guide for filling in our it38 forms I see they give an example on page 11 where a daughter in law can claim group a as her deceased husband was a closer relationship to the disponder.

Just trying to see if my Mam would have to pay the 33% tax rate. I know it’s not huge amount of tax as her share is €14,000 but she would still have to pay over €4,500 tax and I know with her being a pensioner now on just state pension she would be delighted if she could be paying less inheritance tax.

Any help or advice would be greatly appreciated.

 

[Thirsty]

IANAL
The group c threshold rate is €16,250. Assuming no other inheritance, I don't believe there is any tax to be paid on the €14k

[broken link removed]

 

[RedOnion]

Yes, my understanding is that your mum should be Group A as surviving spouse of a closer relation. This is a more technical guide.Here

But I can't see how you would be Group A, unless you're under 18 (a minor). Are you?

 

[casperjack]

Yes, my understanding is that your mum should be Group A as surviving spouse of a closer relation. This is a more technical guide.Here

But I can't see how you would be Group A, unless you're under 18 (a minor). Are you?

Thanks RedOnion for that. Would it make a difference that my mam and dad had separated before he died, so would that affect this being a group A then.

Thanks for point on myself I had thought I would be group b but letter from solicitor had stated I adopted my late fathers group a threshold, but as you say I am not a minor do would be group b, but I should be ok at this group as I understand I can inherit €32 at that rate and I am getting €28k. Would that be correct? I will point that out to solicitor that it is a mistake they made on my letter.

Also do we have to do the tax return ourselves or i see in the guidelines it states in case of inheritance that the return is often filed on behalf of the beneficiary by the personal representative. Would that mean the executor could agree to pay the solicitor to file the returns for the people benefitting from the estate money. ( in this case 4 people - myself , my mother and my dads two sisters, as I’m sure they won’t know how to do the returns either)

Hope the above makes sense. Sorry for all the questions don’t really understand it all and trying to pull what I can from guidelines.

 

[Feemar5]

I was executor of a will and the solicitor involved made the tax return for all beneficiaries which was 3 people.

 

[casperjack]

I was executor of a will and the solicitor involved made the tax return for all beneficiaries which was 3 people.

Great thank you I will ask executor to ask solicitor if they can do it as part of dealing with the estate and they can charge from estate for it, save the beneficiaries the hassle of trying to do it as they are all pensioners as well