There is nothing good about either death or taxes and they hit hardest when they come together, as they often do. Inheritance Tax comes close to being a tax on death itself. In some cases it cannot be avoided, but there are cases where the people who have died could have planned better and saved the survivors some distress at a time when they are very vulnerable.
How can I reduce the tax bill when I die?
Here are some tips.
*If your children are still at home, you can leave them your house and they will be able to claim Dwellinghouse Exemption so long as they stay there for long enough after you die and do not have an interest in any other property.
*You can use every scrap of exemption available by spreading inheritance throughout the family.
*You can give away €3000.00 each to as many people as you want every year without them ever needing to account for tax on it. If you do that to many people for many years, you are soon talking real money.
*If you have a farm or business and plan carefully enough, you can pass it on in a way that is very tax efficient.
*If you are really sure that you have enough money to last you the rest of your life and some to spare, consider forming a family partnership which allows you transfer wealth to your children or others now while still retaining control of it. This is based on the assumption that the wealth in the partnership will have grown substantially by the time you die and means that your beneficiaries will not pay Inheritance Tax on the growth.
*Make sure that your Income Tax affairs are in order and don’t leave it to the survivors to sort out. Revenue is now taking more interest in the income tax history of people who have died because they now have more staff available thanks to technology.
The most important thing is to take advice at an early stage, so email firstname.lastname@example.org, click the call button, phone 014545138 or use the Contact Form.