My parents are deciding to write a will and want to either include a trust with a annual £15,000 or lump sum for £350,000 for me and we are a bit naive regarding the Tax implications - is it best to do an Irish trust or UK - which option would pay less tax ? Or is the best option regarding tax to go for a lump sum? Would I get better growth with UK investments or is that not possible to do?
Tax implications on a Trust or Lump sum inheritance from UK - now living in Ireland
- Thread starter Richards
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One of our specialist subjects
globalwealth.ie
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Beware the CAT - Everlake
Estates that are subject to IHT in Ireland and the UK are quite commonplace
globalwealth.ie
Deeds well done - Everlake
The nearest equivalent to a UK deed of variation under Irish tax law would be a directed deed of disclaimer, which is treated as inheritance followed by a gift
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Thanks Marc - I understood some of the info - so if the amount ends up being £325,000 there would be zero UK inheritance tax but I would be liable to the Irish equivalent CAT - as this is inheritance would be from my parents what CAT would I be liable to pay?
If the entire estate is £325k and you are the only beneficiary then there is nothing to worry about.
If however you have been living in Ireland for 5 consecutive tax years at the time of the inheritance and your share is greater than €335k currently then you need to ensure that their U.K. lawyer talks to an Irish lawyer
If however you have been living in Ireland for 5 consecutive tax years at the time of the inheritance and your share is greater than €335k currently then you need to ensure that their U.K. lawyer talks to an Irish lawyer