Gifted shares by Parent V's Willed share

My mother owns a number of Irish shares which she has earmarked for her 3 children, of which i am one.
Currently we are each being willed 1/3 of these shares on her death.

She was thinking of transferring these shares, as a gift, to each of us before her death.

Can anyone outline the different tax (CGT, Stamp Duty etc.) liabilities for both my mother (obviously if she gifts them before her death) and for myself for these 2 scenarios.

Thanks in advance.
gLo.

If your mother gives you a gift of the shares she will be liable to CGT on any increase in value in the shares less expenses less the annual exemption of 1,270. If your father is still alive she could transfer some of the shares to him in order to avail of his annual exemption assuming he is not already availing of it. The shares do not have to be sold, your mother will take the value of the shares on the day the transaction takes place and use this to calculate her gain. The shares are then transferred to you and your sisters.

You can receive a gift of 3,000 tax free per annumn. Over this limit you pay tax @ 20%. This also affects your inheritance threshold especially if you are talking about a large amount of money. If you decide to sell the shares you will be liable to any gain on the shares from the date the transfer takes place.

You could receive the gift over a number of years. Your mother would receive the exemption over a number of years and you could avail of the gift exemption also over a number of years.

Thanks for that Asdfg.

Can you or anyone confirm that if these are passed on as an inheritance that there would be no tax liability on my mothers estate and also my tax liability (CGT) would only be on gains above the value of the shares at the time they are transferred into my name, post-inheritance?

Thanks again.
gLo

Glo

You are correct. Your mother should not transfer any shares to you now on which there is a capital gain. If you need the cash, she should transfer shares which have the lowest capital gain.

Brendan

Many thanks for all the info guys.
gLo