A grandchild, under 18, is Category A for CAT purposes if their parent is dead

Brendan Burgess said:

Grandchildren can inherit up to €33,500 tax-free and pay 33% on any excess over that.

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If they are under 18 when benefactor passes away they are Category A though as the child of the benefactor is deceased.

No tax in these circumstances.

Hi Coyote

I don't want to take the other thread off topic but this is a very interesting point.

Does it apply to gifts and bequests?

John dies when his son Peter is 15.

If Peter inherits from John's father before Peter is 18, the €335,00 Threshold A applies.
After 18, the €33,500 Threshold B applies.

Could the grandfather give a gift to his grandson before he reaches 18?

Brendan

Here's what the Revenue [broken link removed]says. I don't know more than this!

Group A​

The Group A threshold applies where you, the beneficiary, on the date of the gift or inheritance are:

• a child of the:
  • disponer
  • disponer’s spouse or civil partner (commomly known as a stepchild)
• a minor child, under 18 years of age, of a deceased child of the:
  • disponer (commonly known as a grandchild)
  • disponer’s spouse or civil partner (commonly known as a step-grandchild)
• a minor child of the spouse or civil partner of a deceased child of the:
  • disponer
  • disponer’s spouse or civil partner
• a parent of the disponer and you take an absolute interest (that is, not a [broken link removed]) of the inheritance on the death of your child.

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where you, the beneficiary, on the date of the gift or inheritance are:

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Thanks

That is very clear and is an interesting tax planning point which I had not heard before.

If a person dies with children under the age of 18, the grandparents can gift the children up to the Group A threshold.

From time to time, people ask if there is any advantage to giving a gift now or waiting until the disponer is dead. This is a real advantage in giving a gift now. It probably doesn't arise too often, but it's well worth knowing about for the cases that do arise.

Brendan