Inheritance Tax on Inheritance from Mother-in-Law?

[kk0312]

Hi, I'm asking for advice on behalf of my mother. My Dad passed away tragically approx 12 yrs ago when we were all quite young. The thing is, he died before his mother (my grandmother). He had been a farmer for many years but the farm was still in Granny's name when he died so her will was invalid.. So after he died my grandmother did the decent thing & made a new will with the farm to go to my Mother. My Granny then passed away in 2000 so my mother inherited the place. We have not done anything with it since & we want to get it sorted soon (claim it into her name). Is there any exemptions for her etc, what would her entitlements be?

She doesn't want to sell it or anything, she just wants to get it in her name and maybe rent it out. The problem is she is still a widow with three children (6 altogether) in full time education & is basically broke. Even if she has to pay tax will it be accepted on an annual basis so she could pay it out of the rent??

Any advice on this matter would be appreciated.. I really want her to get it sorted as she deserves a bit of a decent income.. Thanks in advance..

 

[pat127]

Hi, I'm asking for advice on behalf of my mother. My Dad passed away tragically approx 12 yrs ago when we were all quite young. The thing is, he died before his mother (my grandmother). He had been a farmer for many years but the farm was still in Granny's name when he died so her will was invalid.. So after he died my grandmother did the decent thing & made a new will with the farm to go to my Mother. My Granny then passed away in 2000 so my mother inherited the place. We have not done anything with it since & we want to get it sorted soon (claim it into her name). Is there any exemptions for her etc, what would her entitlements be?

She doesn't want to sell it or anything, she just wants to get it in her name and maybe rent it out. The problem is she is still a widow with three children (6 altogether) in full time education & is basically broke. Even if she has to pay tax will it be accepted on an annual basis so she could pay it out of the rent??

Any advice on this matter would be appreciated.. I really want her to get it sorted as she deserves a bit of a decent income.. Thanks in advance..

There are a number of points that aren't clear but in answer to your first question about possible liability to Inheritance Tax, you'll find the information at

http://www.citizensinformation.ie/c...ital-acquisitions-tax/?searchterm=inheritance

The relevant para is the one beginning "If you receive a benefit from a relation of your deceased spouse....". Note - the Group A threshold in 2000 was Euro 381,000 ([broken link removed] ) and in order to assess whether tax might be applicable you'll need to know the value of the farm at that time. If tax is applicable you'll need to discuss arrangements about payment with Revenue directly.


When you say that "we want to get it sorted soon" do you mean that your Granny's affairs haven't been sorted out yet, including the possibility that Probate needs to be applied for? If this is the case I'd strongly recommend that you consult a Solicitor.

 

[kk0312]

No we haven't been sorted Granny's affairs out yet, although we have consulted a solicitor. So if the farm was worth say 500k in 2000 where does she stand tax wise then? I'll contact the revenue regarding payment..

If anyone has any questions that will help clarify this scenario just ask..

 

[Vanilla]

Your mother may qualify for agricultural relief. It's certainly an instance where her first port of call should be to a tax advisor, bringing with her a valuation of the land and house and any other assets she is inheriting plus a valuation of any assets she currently owns.

 

[kk0312]

Ok thanks Guys I'll tell her that. She technically doesn't own any assets other than this land as her current house is local authority, she was advised a while back not to buy it out as it would affect her regarding the inherited property.. The land has an old hosue on it nut it is derelict for almost 40 years..