Gift which is now an inheritance

Discussion in 'Wills, inheritances and gifts' started by Mijne, Jun 5, 2018.

  1. Mijne

    Mijne Frequent Poster

    Posts:
    50
    I have a query about a gift which now forms part of an inheritance. I know gifts and inheritance are treated differently by the Revenue but still confused.

    My mother and I had a joint bank account, we were joint tenants and both put money into the account. When my mother died her share of the account passed to me as an inheritance. It was outside the estate. The year my mother died she gave me €3,000 as a gift, and as we shared the account I left the money there. I have no evidence of this it was just her wishes. Now this €3,000 forms part of the inheritance of the joint account. I am now completing the IT38 Form for the Revenue. Will the full amount in the account be subject to CAT or will be it be minus the €3,000 gift. Could someone clarify this for me?

    Many thanks.


    Mijne
     
  2. mf1

    mf1 Frequent Poster

    Posts:
    4,078
    Complete the IT38 Form as per what happened.

    If Revenue query it, you'll have to explain your position.

    mf
     
  3. Mijne

    Mijne Frequent Poster

    Posts:
    50
    mf

    Many thanks for your reply. Should I put an attachment with my form and explain my situation?

    Mijne
     
  4. john luc

    john luc Frequent Poster

    Posts:
    301
    I thought joint accounts don't form part of an estate
     
  5. RedOnion

    RedOnion Frequent Poster

    Posts:
    1,756
    Correct with joint tenancy. It's not part of estate, but it's still subject to capital acquisition tax.
     
  6. Vanessa

    Vanessa Frequent Poster

    Posts:
    178
    Correct.
    It doesnt form part of the estate so no other beneficiary gets a share of it but it is liable to tax
     
  7. Marsha25

    Marsha25 Frequent Poster

    Posts:
    90
    Is it only liable for tax if total amount of gifts/inheritance is over €310k?
     
  8. Mijne

    Mijne Frequent Poster

    Posts:
    50
    Marsha25

    Thank you.