Tax Implications - Son's Estate to Parents

Hello folks,
Unfortunately my brother passed away tragically last year. As he was unmarried, the likes of his savings, life insurance pay out went to our parents as they were listed the beneficiary of his estate.
Just wondering are there any tax implications for my parents in this?
Also if they gifted money to other siblings just wondering does tax have to be paid or is there a threshold.
Thanks for help

Blue Hero said:

Unfortunately my brother passed away tragically last year.

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Sorry to hear that, condolences.

Blue Hero said:

As he was unmarried, the likes of his savings, life insurance pay out went to our parents as they were listed the beneficiary of his estate.
Just wondering are there any tax implications for my parents in this?

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What is the value of the estate? Capital Acquisitions Tax group A tax exemption threshold of €335K (per parent?) should apply on an inheritance from child to parent(s) as far as I know so unless he left more than that (or maybe more than €670K?) or this inheritance plus any previous group A inheritances (e.g. from your parents' parents) exceeds the threshold there shouldn't be any tax due.
Even if the inheritance is tax exempt they may have to file a return if the amount inherited is 80%+ of the threshold (including any previous inheritances in the same group as far as know).

Blue Hero said:

Also if they gifted money to other siblings just wondering does tax have to be paid or is there a threshold.

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This is separate to the inheritance issues above. They can each gift €3K p.a. to others tax free without eating into the relevant lifetime CAT exemption thresholds. (This can extend to their childrens' spouses/partners, grandchildren, or even unrelated individuals).
If they gift more than that in one go then it reduces the lifetime group A allowance for the recipient child and the recipient may have filing responsibilities and/or tax liabilities depending on the amounts involved.

If I've made any mistakes above I'm sure that others will quickly correct me.

Hi ClubMan, thanks for your comments back, much appreciated.
I believe between my brother's savings and life insurance pay out, the total value of his estate is around 350k approx (my brother did not own a house or an apartment), need to get the exact amount from my parents. You mention that the threshold is 335k per parent so as my 2 parents are alive it is 670k, so in that case my parents do not have to worry about paying tax...is that correct? There has been no inheritances from my grandparents in the past.
Noted on the 3k p.a threshold. Surprised it is this low to be honest. I will let my parents know about this and if I have any further questions I will come back on this post
Thanks again for taking the time to give your comments, have a good day!

Blue Hero said:

You mention that the threshold is 335k per parent so as my 2 parents are alive it is 670k, so in that case my parents do not have to worry about paying tax...is that correct?

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If the estate went to them jointly or 50% to each then I think that's the case but you/they should double check to be sure.

The CAT exemption thresholds are increased in the budget but I think that the old group A €335K threshold applies here and not the new €400K figure.

Blue Hero said:

Thanks again for taking the time to give your comments, have a good day!

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You're welcome.

I presume that this doesn't apply in your case?

Also, I mentioned group A on the basis of this:

Group A​

Group A threshold applies to the:

• ...
• parent of the disponer, where the interest taken is an absolute interest (not a limited interest) and the inheritance is taken on the death of the disponer (the beneficiary’s child)
• ...

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But there are cases where group B applies:

Group B​

Group B threshold applies to the:

• parent of the disponer (in respect of a gift or a limited Interest)
• ...

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Thanks again for this info ClubMan, I will take it away and discuss with the folks