Leaving house to godson and parents

[thewire2020]

Made my will 20 years ago at the time left my house to my parents and godson 1/3 each. House is now paid off, my parents are still thankfully both alive and my godson is now 20. Anytoher cash to be distributed to siblings and their kids.
My health is ok age 53, if I was to change my will to my godson only for the house and any other cash etc to my siblings and other nieces and nephews will they have to pay inheritance tax?

 

[Flybytheseat]

If your godson is your nephew then they would be CAT group B and would pay CAT (33%) on anything above €32,500. See link below:

https://www.citizensinformation.ie/en/money-and-tax/tax/capital-taxes/capital-acquisitions-tax/

If your Godson is not related to you at all they would be CAT group C and would pay CAT (33%) on anything above €16,250.

 

[thewire2020]

Thank you yes he’s my first nephew born and godson. A little bit of reading there , many thanks

 

[Flybytheseat]

Thank you yes he’s my first nephew born and godson. A little bit of reading there , many thanks

You're most welcome. You've a couple of options to think about e.g.
1) Leave your house and enough cash to cover his CAT bill to your godson
or
2) Split your entire estate between all your siblings and their kids (Group B CAT) up to the €32.5K threshold each and then leave any balance over and above to your godson. This will minimise CAT paid to Revenue though probably result in your house being sold.

 

[thewire2020]

Option B sounds like the best option , thanks you again

 

[Bronte]

You can gift your godson 3K every year tax free.