Estate Planning – Frequently Asked Questions
What is inheritance tax and who pays it?
It is a tax on the value of property and all other assets that people receive from you, when you die. While there is no limit on the amount you can inherit from your spouse or civil partner, however if your co-habiting partner, children and other relatives inherit assets from you, they may be liable to pay a significant tax bill.
What rate of inheritance tax is charged?
Inheritance tax is charged at a rate of 33% on chargeable assets left after your death, after the deduction of any tax-free threshold or business property or agricultural reliefs. Notably, tax is charged on assets located abroad also, where the deceased or the beneficiary is resident in Ireland.
What are the tax-free thresholds?
On or after 14/10/2015, a child can inherit €280,000 inclusive of all gifts and inheritances, Brother/Sister/Niece/Nephew/Grandchild €30,150 and any other relative €15,075.
How can I prevent revenue from taxing my estate on death?
No, not if amounts fall above the thresholds, but a practical solution is to arrange a Section 72 whole of life policy on your life (and that of your spouse, if applicable), which would be used to pay the Inheritance tax when it falls due. The premiums could be funded by you or your children.
How do I calculate the level of life cover needed?
You could visit your solicitor or tax adviser, or come to us in the first instance. Once the liability is calculated, we can then provide you with the best value Section 72 whole of life policy on the market.
Why choose OneQuote.ie for my Section 72 - Life policy?
One Quotes qualified financial advisers have decades of experience in assisting and advising clients in relation to inheritance tax and can provide the most cost effective simple solution.