Advice on reducing Tax Liability on Inheritance to Grandchildern

[SparkRite]

Hi,
Hoping somebody may have some advice on this matter.

My elderly parents are changing their will and would like to leave everything between their
two children and two grandchildren(aged 18 and 22). They have been legal guardians to their two grandchildren for the past twelve years.

Now the advice I am seeking is the most tax efficient way to bequeath to the two grandchildren, because as far as I know they can only inherit 25K tax free from grandparents.

I do not know if the fact that they were orphans and were effectively brought up by my
parents, who never legally fostered them, but were, as stated, legal guardians, makes any
difference to the amount that they can inherit.

Anybody able to advise on this, or indeed advise on a method to reduce any tax obligation
maybe in the way of trust funds etc. for the two grandchildren ?

Thanks in advance.

 

[44brendan]

If the funds involved are reasonably significant you should steer your parents towards a good accountant!

 

[galwegian44]

Here's some info that you might find useful http://www.taxworld.ie/taxes/cat/current/summary

You may not be aware that your parents can gift €3,000 each (so €6,000 for both parents) to each child every year, this would match the exemption threshold for grandparents (€30,150) after 5 years so is worth considering.

(d) The first €3,000 of gifts taken in each calendar year (s 69).