Inheritance Tax Query

[wigwam]

My mother has come into an inheritance recently (her brother passed away without making a will). I worked out the likely inheritance tax bill and its quite substantial.

Is there any way to reduce it eg using up the tax free thresholds of nephews/nieces?

 

[Ravima]

what is teh asset? is there any possibilty of using agricultrual relief if a farm/land or business releif is a business?

Did she live with brother?

To further (possibly) complicate matters, are there any other brothers/sisters or children of deceased brothers/sisters?

 

[Madangan]

My mother has come into an inheritance recently (her brother passed away without making a will). I worked out the likely inheritance tax bill and its quite substantial.

Is there any way to reduce it eg using up the tax free thresholds of nephews/nieces?

Generally speaking once she has inherited it then its too late for tax planning on that inheritance..she cant use up other peoples tax free threshold because she has inherited it not them.

If her entire tax free threhold is intact she gets approx first €47,500 tax free.

As the previous poster said does agricultural/business relief/exempt dwellinghouse relief(if its a house in which she has lived for last 3 years plus a few more conditions) apply?

If nothing else now is the time for her to consider tax planning for the future.

 

[Vanilla]

Generally speaking once she has inherited it then its too late for tax planning on that inheritance..she cant use up other peoples tax free threshold because she has inherited it not them.

Although do not forget that there is the possibility here of a disclaimer which might well have the desired effect. Talk to a tax adviser on the issue.

 

[wigwam]

Thanks for the replies. Agricultural/business relief doesn't apply here. There are other brothers/sisters involved.

RE the disclaimer route - any further details? Also do the other brothers/sisters complicate this?

 

[xt40]

i queried this before and iirc, a disclaimer means giving up rights to the inheritance which then reverts to the next people in line, not those of your choice.

 

[wigwam]

Does that mean therefore that all the beneficiaries have to disclaim their entitlements so that there are no beneficiaries?

And at that stage, can the estate then be distributed among all the relevant parties in the most tax efficient way ie using up the tax free thresholds available (for brothers/sisters/nephews/nieces)?

 

[xt40]

if there are no beneficiaries, does it not revert to the state. im sure revenue have all the angles covered