It doesn't. It locks your son into receiving an inheritance taxed at full value, with a valuation date thrust upon him the day your spouse dies and with the tax rules that are in place then. It's a bad idea
It doesn't. It locks your son into receiving an inheritance taxed at full value, with a valuation date thrust upon him the day your spouse dies and with the tax rules that are in place then. It's a bad ideaAs long as leaving a lifetime interest to the property to my wife (no thresholds between spouses) causes the assessed value of my son's inheritance to fall ....
Ah that's a shame. I will likely sell up my rentals in Ireland and buy German property so. I can definitely do it in Germany. It's a common tax avoidance measure here to grant a life interest to yourself or your spouse and then gift the property to your child to reduce the value of real estate for gift/inheritance tax purposes. Having said that, the whole thing is more generous here: 400k limit per parent every 10 years, so gifts up to 800k are tax free every decade to a single child from both parents combined. And there's a family home exemption as mentioned above. Irish inheritance taxes are truly punitive at 35% or whatever it is now. Here it starts at 7% if you go over the far more generous thresholds.It doesn't. It locks your son into receiving an inheritance taxed at full value, with a valuation date thrust upon him the day your spouse dies and with the tax rules that are in place then. It's a bad idea