What happens during Probate?

[Wifey]

My mother was widowed 5 years ago and my dad left everything to her in his will. She would have e. 400k in the bank and a family home worth 160k.
My dad gifted myself and my two siblings homes in 2006 which he obtained in a property deal on our original family home. The home I was gifted was valued at 295k in 2006 but worth half that now. I understand that inheritance thresholds have dropped significantly since then and we would be at the limit for gifts.
Apart from the 3k she can gift us all per year how else can we handle the tax bill on her death. She is in good health now but worries constantly about how to handle her affairs but is reluctant to seek professional advice. My dad would have paid substantial tax on the property deal in 2006 and its annoying to think that we may have to pay tax on the same money again if it passes to her children or grandchildren. I'm not looking to avoid tax just for good advice to limit the liability.
Thanks

 

[noproblem]

Slow down, your mum is still alive and could outlive all of you. Now I know it's unlikely to happen, but? Next thing is your mothers care into the future. I'm presuming she's living in her own house and has a pension? What happens if she needs care, will the family be able to care for her or will she need a nursing home, etc? As you say she has €400k in the bank, so that will need sorting out, but if she doesn't have an income this money will need to generate some income. These are things that need sorting before anyone goes taking from the pot. Life's not predictable and neither is death.

 

[Wifey]

Slow down, your mum is still alive and could outlive all of you. .

Very true noproblem. We live next door and I'm very fond of my mum and do plan to care for her if possible should she require it later on. She has a contributory state pension but it doesn't go far. I'm not interested in her money but she is increasingly fretting about what to do with it. She sees it as a burden and is mad my dad has left her to deal with it! I suppose I'm looking for things to suggest to her to put her mind at rest. Inevitably she will need to see a solicitor/accountant for professional advice.

 

[noproblem]

If it's her choice and she really wants to leave her money to all of you with the least amount of tax liability then she should talk to a good accountant or financial planner who works in this end of things. It's not complicated but needs good people who know what they're doing.

 

[DirectDevil]

You, your siblings and your mother would benefit from professional advice on the potential tax liabilities as matters stand. If you can all be properly advised you can then make informed choices as to how to structure your assets and wills in the most tax efficient way. Tax planning is not a sin !

BTW I see that your mother has €400K in the bank. She is probably only protected to the order of €100K by the deposit guarantee scheme in the event of the bank going wallop. €300K needs a new home......