Death Gratutiy

[misstealeaf]

Does anybody know if a death gratuity received under a will is subject to income tax or inheritance tax? I am due to receive this under the terms of my dads will. From the revenue webstie it does seem that perhaps it is subject to income tax however i cannot find the relevant legislation to back this up.

[broken link removed]

Can anybody please advise?

My thinking is that if it is subject income tax I would want to disclaim this particular entitlement under the will and let this fall back into the estate. It would then fall to my mam and as she was my Dads spouse there would be no inheritance or income tax payable.

Is this something that would be possible from a legal standpoint do you know?

 

[staff]

You can inherit up to €225,000 tax free from father to son and anything over that is taxed at 33%.

 

[misstealeaf]

Thanks staff but the aggregate benefits are above 225k. My question was really if the death gratuity part of the inheritance is subject to I come tax or cat?

 

[44brendan]

CAT