Hi. I have a query here in regard to Inheritance Tax on a house and whether it may be exempt from such under Section 86 Tax Relief.
My grandmother died two weeks ago.
In her will, she left her house to her daughter (my mother) and son (he is a bachelor).
However she also stated that on their eventual passing, the house was to be left to her grandson (my brother).
My mother was told by her solicitor that no Inheritance Tax was due from either her or her brother , but that when the grandson assumed ownership of the house, that Inheritance Tax would be payable by him.
My brother lived with his grandmother for 13 and a half years from 2001) prior to her death.
From August 2006 to September 2013 he was her primary carer and was in receipt of carer's allowance as he lived alone with her.
In September 2013 the carer's allowance was transferred to my mother, who also took up residence in the house at this time. My brother has however continued to live at the grandmother's house from September 2013 to present. Does this fulfil the criteria for exemption from Inheritance Tax as per section C on the following link, or would he have had to be receiving carer's allowance right up to her death to be exempt?
http://www.revenue.ie/en/tax/cat/leaflets/cat10.html
He is not, to the best of my knowledge, currently beneficially entitled to any other dwelling- house or to any interest in any other dwelling- house, although his parent's still own another house (he has not lived there since 2001, both parents are still alive and no will has been made on that house yet).
i) Is my brother exempt from Inheritance Tax given the above?
ii) Is the date of the gift/inheritance of the house classed as the date of my grandmother's death, ie 2 weeks ago, or is it the date of death of when my mother and her brother have both passed on?
iii) Must my brother continue to live at the grandmother's house for the next six years, as per section E in the above link, to be exempt?
Thanks in advance for any replies.
My grandmother died two weeks ago.
In her will, she left her house to her daughter (my mother) and son (he is a bachelor).
However she also stated that on their eventual passing, the house was to be left to her grandson (my brother).
My mother was told by her solicitor that no Inheritance Tax was due from either her or her brother , but that when the grandson assumed ownership of the house, that Inheritance Tax would be payable by him.
My brother lived with his grandmother for 13 and a half years from 2001) prior to her death.
From August 2006 to September 2013 he was her primary carer and was in receipt of carer's allowance as he lived alone with her.
In September 2013 the carer's allowance was transferred to my mother, who also took up residence in the house at this time. My brother has however continued to live at the grandmother's house from September 2013 to present. Does this fulfil the criteria for exemption from Inheritance Tax as per section C on the following link, or would he have had to be receiving carer's allowance right up to her death to be exempt?
http://www.revenue.ie/en/tax/cat/leaflets/cat10.html
He is not, to the best of my knowledge, currently beneficially entitled to any other dwelling- house or to any interest in any other dwelling- house, although his parent's still own another house (he has not lived there since 2001, both parents are still alive and no will has been made on that house yet).
i) Is my brother exempt from Inheritance Tax given the above?
ii) Is the date of the gift/inheritance of the house classed as the date of my grandmother's death, ie 2 weeks ago, or is it the date of death of when my mother and her brother have both passed on?
iii) Must my brother continue to live at the grandmother's house for the next six years, as per section E in the above link, to be exempt?
Thanks in advance for any replies.