Inheritance

My wife has recently come into a financial inheritance from her late brother in the U.S.A.All taxes etc have been paid State Side, is she still subject to tax in Ireland if so what persentage.

I wonder if this will effect my pension i am on an old age contributary pension and am receiving an allowance for my wife.

Thanks.
rochs

Hi rochs

It used to be the case that these might have been exempt in Ireland.

Depending on the amount and whether your wife ever got a previous inheritance would be two factors. If it is taxable, she should be able to get a deduction in respect of US tax paid. The rate is 20%.

I assume that the allowance for your wife is because she did not qualify for a Contributory Pension. Therefore the allowance that you got would have been means tested.

The long and short of this, if she keeps the money, and if it is over €20k, the they would seek to reduce the amount as her 'means' would have changed.

I dont have a lot of details to go on, so maybe some advice is needed.