Inheritance

[32KX]

What is the most tax efficient way to acquire property / land from ones parents.
Assuming that the threshold of €521k has been used up, is a lifetime transfer where a reduction of 90% of the value is allowable (Business/Agri Relief) the most efficient way of transferring the assets - where the costs are CAT and Stamp Duty of 4.5%
Or are the costs incurred following the death of the donor less (assuming that the assets are transferred in a will) - CAT only?

 

[Ravima]

death is cheaper, but then again from bitter experience, if you have the oppertunity of getting it whilst the doner is alove, pay the extra stamp duty and get it into your name!

 

[32KX]

Thanks ravima. Does that mean that the CAT paid on death is also a reduced amount (ie for Agri or Busines Relief)?

 

[North Star]

Inheritance of a home can be exempt from inheritance tax if:
a) you have lived in it for at least 3years before death of your parents/property owner
b) you cant own or have an interest in any other home
c) If you are under 55 you must continue to own and occupy the home as your family home for 6 years

So if you can meet and continue to meet all 3 conditions, your parents should they wish to, would be able to build and gift you a house of any value without you incurring inheritance tax

not an answer to your specific question but I hope this helps.

 

[ramble]

Your parents may also be hit with Capital Gains Tax on a lifetime transfer which does not apply on death. Encourage your parents to obtain good estate planning advice.