Inheritance

[rochs]

My wife has recently come into a financial inheritance from her late brother in the U.S.A.All taxes etc have been paid State Side, is she still subject to tax in Ireland if so what persentage.

I wonder if this will effect my pension i am on an old age contributary pension and am receiving an allowance for my wife.

Thanks.
rochs

 

[WizardDr]

Hi rochs

It used to be the case that these might have been exempt in Ireland.

Depending on the amount and whether your wife ever got a previous inheritance would be two factors. If it is taxable, she should be able to get a deduction in respect of US tax paid. The rate is 20%.

I assume that the allowance for your wife is because she did not qualify for a Contributory Pension. Therefore the allowance that you got would have been means tested.

The long and short of this, if she keeps the money, and if it is over €20k, the they would seek to reduce the amount as her 'means' would have changed.

I dont have a lot of details to go on, so maybe some advice is needed.