Inheritance Tax/Joint Ownership

M

MontereyJack

Guest
Hi,

My father died recently and my mother currently holds in her name both property and cash deposit A/Cs. She is currently considering purchasing a retirement property.

The total valuation of assets would be considerably higher than the 470K tax free inheritance limit. Would the following make no/any difference to the possible tax liability. At the present time there would be a tax large bill against our property assets

Put everything all assets our joint names to avoid probate etc.??

I purchase a retirement property for my mother in my name so tax would not have to be paid on it in the event of her death??

Any other suggestions?

Thanks
 
Am assuming you mean there would be a taxable transfer on the death of your mother.

How many children are there?

"putting things into your name" would also be a transfer and be liable to CGT if over the limit per child.

'I purchase a retirement property for my mother in my name so tax would not have to be paid on it in the event of her death??'

This is the creation of another asset out of your own money. This would not reduce the amount of assets transferable out of your mother's assets.
 
Thanks for the help

There is just on child - what's the CGT limit in this case?
 
The treshhold from Parent to child is 478K This includes all gifts received from either parents from 1/12/99 with the exception of an annual 3K allowance.
There is no tax payable by the surviving spouse
 
The one thing you might want to look into is a transfer now before death. There may be a separate limit between a gift and inheritance. It's been a while since I studied tax, but if there is a death within 2 years of gift the gift is treated as inheritance.
Someone here will probably be able to say if there are two different limits for gifts and inheritance.

If the above is correct (I’m not sure, but it should be easy enough to find out), then your mother could transfer money to you, as a gift, and you could build a home and let her live in it.

Apologies if the two thresholds are connected.
 
Gifts and inheritances both come under CAT and are treated in the same way.
 
There is one difference between Gift Tax and Inheritence Tax - you are allowed to receive € 3,000 from any donor tax-free each year.
 
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