Inheritance tax on family home...dwelling house exemption

[alysrivers]

My mother died just over three years ago and left me the family home in her will. Due to various issues probate has not yet been issued but is expected shortly. I was not living in the house at the time of death, but have been living there since the date of death (the past three years)

I understand there is a dwelling house exemption for people who lived in the home 3 years prior to inheritance. For tax purposes does this refer to 3 years before the date of death,or three years before acquiring the title to the property? If it was the latter then it seems I would be exempt. I have no interest in any other property.

 

[Brendan Burgess]

From

Important dates for CAT

This page explains the important dates for dealing with CAT

www.revenue.ie

Date of gift or inheritance​

The date of a gift is normally the date it is received. The date of an inheritance is usually the date of death of the person leaving the inheritance.

These dates determine the Capital Acquisitions Tax (CAT) rates and the group threshold that apply. The person who gives the gift or inheritance is called the disponer. The person who receives the gift or inheritance is called the beneficiary.

 

[Brendan Burgess]

That makes sense.
Otherwise the beneficiary could move into the family home and delay the administration of the will until the 3 years had elapsed.
Brendan

 

[Steven Barrett]

My mother died just over three years ago and left me the family home in her will. Due to various issues probate has not yet been issued but is expected shortly. I was not living in the house at the time of death, but have been living there since the date of death (the past three years)

I understand there is a dwelling house exemption for people who lived in the home 3 years prior to inheritance. For tax purposes does this refer to 3 years before the date of death,or three years before acquiring the title to the property? If it was the latter then it seems I would be exempt. I have no interest in any other property.

Look at the intention of the exemption. It is for adult children who never moved out of the family home, so they weren't landed with a massive CAT bill which would have forced them to sell their only home. Otherwise you'd have as Brendan said, people moving into the family home and selling their own homes, delaying probate for 3 years and avoiding paying CAT.

 

[fistophobia]

I have head of someone who sold their property, moved back home with a parent, lived there 3 to 4 years.
It was all planned, to avail of the exemption.