Farm house only left to 4 daughters who wish to transfer all rights to the their nephew who has been farming the land attached to the Farm house with his father since leaving school. Would in inheritance tax be payable if each share was only valued at 30,000 euros (value of house)
1. No inheritance tax would be payable by each daughter if the lifetime amount each has inherited from their parents is less than €250,000. Under Irish Inheritance TAx law, each child has a lifetime exemption from Inheritance Tax of €250,000, when it comes to inheritances from both parents. Accordingly, if the total of all gifts, including the €30,000 valuation given to the land means that each has inherited less than €250,000, then no inheritance tax is payable by each of them. It is not the actual amount at which this particular inheritance of the land is valued at, that is important. It is the aggregate amount inherited by each daughter over their lifetime from their parents which is key.
I actually was referring to the nephew not the daughters as I was unclear as to how much an aunt could gift to a nephew that is why I mentioned that each daughters gift would be approx 30,000 to the nephew.
2. The lifetime exemption amount which a nephew can inherit from his aunt is €16,350. This is a one-off exemption. You can only get it once. Here only the first €16,350 of the total €120,000 will be tax exempt. There is no such thing as having an exemption per aunt. If one of the daughters is his mother, then he will have the €250k lifetime exemption in relation to her. But the other three aunts gifts which total €90k will be much over his lifetime exemption of €16,350.
Barrister 17 years experience
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).