Inheritance Tax

B

brianmully

Guest
A father wants to transfer a site to each of his 7 sons worth about 50k each. 5 sons want to sell and the other 2 want to develop and build on these sites, two for own private use and 3 for development. Is it most tax effecient to transfer all sites to just one of the sons and for that son to say gift each other brother the 50k or does it matter?
 
It is most efficient to have each son receive a site each from the parent.
You are exempt from inheritance/gift tax on the first €478,155 you receive from a parent. Brother to brother the exemption falls to €47,815. See http://www.fixmytax.com/91.html for more info.
 
Hi Froggie
Just a quick question ,is this 478,155 per child.Eg Perents assests 600,000
3 kids.Will they pay any ihheritance Tax.
Second quick question if my wife inheritance is 200,000.I get from my perents 470,000 will we pay this injust Tax.
cheers
!RAY
 
!Ray, I am not an expert in this field, but yes the 478,155 is per child. I dont really understand the 2nd part of the question, can you explain.
 
Hi Froggie
want i mean is if my wife get lets say 200,000 inheritance tax.I a couple of years leter i recieve 478,000 inheritance tax ,because my wife already recived inheritance tax will this effect my inheritance .
cheers
Ray
 
Each son could receive the gift from the father in instalments over a period of several years (€3,000 per year) under the annual small gift exemption. This wouldn't use up their CAT allowance.
 
santiago said:
Each son could receive the gift from the father in instalments over a period of several years (€3,000 per year) under the annual small gift exemption. This wouldn't use up their CAT allowance.
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I'm not exactly sure how you would transfer €3,000 worth of a site each year? Surely the legal costs of doing this would be ridiculous??

wheels said:
So if the house is valued at 475,000 and given as a gift, no one pays anything?
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If a house is transferred from a parent to a child, and that child has not received any other gifts/inheritances from their parents then they should be able to receive the gift net of capital acquisitions tax. Other taxes should also be considered - stamp duty, CGT if the house was not the parent's PPR. Speak to an advisor.
 
Newby said:
If a house is transferred from a parent to a child, and that child has not received any other gifts/inheritances from their parents then they should be able to receive the gift net of capital acquisitions tax. Other taxes should also be considered - stamp duty, CGT if the house was not the parent's PPR. Speak to an advisor.
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I see, the house wouldn't be a PPR so stamp duty and CGT would probably have to be paid.
 
wheels said:
I see, the house wouldn't be a PPR so stamp duty and CGT would probably have to be paid.
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It would depend on the facts of the case. For that amount of money it would be worth speaking to a tax advisor about. There are some reliefs that may be available.
 
In relation the the €3,000 portion transfer per anunm - the revenue have the power to look at the sequence of each transaction and decide it is actually on transaction i.e. the transfer of 1 site.

The €3k per anunm will work perfectly well for cash or one off gifts.
 
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