Republic of Ireland Law
Republic of Ireland Law Questions Answered by Experts
1. The value of the right of residence your brother has over the house is not going to be valued at very much. If the value of the house is 50k, then the right of residence is probably only worth 15k at most. Accordingly, this would be the taxable value for inheritance purposes. Secondly, the issue of whether your brother pays Inheritance tax on this value depends on whether the total lifetime gifts your brother has received from his parents exceed 280,000 euros or not. There is a lifetime exemption from INheritance tax or Capital Acquisitions TAx to give it its correct name of 280,000. Be aware that your brother would have to exceed this sum for the total value of gifts and inheritances he received in order for tax to be payable. So you will need to chat with him and ascertain the value of gift and inheritances he has received to date.
2. Well so long as the value of the land, taken at the time your brother inherited it, did not exceed 265,000 euros, he will have no liability to Capital Acquisitions Tax (Inheritance Tax) on his inheritance of the right of residence in the house today.