I'm trying to get my head around exactly what I'll be liable to pay.
Both my parents both died a little over 10 years ago. Since my brother and I were both minors at the time, we didn't get access to our inheritance straight away. It was up to our aunt, who was also our legal guardian, to manage everything for us. The house has been rented out for most of that time and the money went into an account to split between us. Most other things went into the shed or attic.
We will be getting everything in February when my brother turns 18. The biggest thing would be the house, which I'm guessing will be valued somewhere between €400,000-500,000, based on the asking price for a house a few doors down in 2010. Plus other belongings, there are a few things that the will specified which one of us they should go to, but for the most part it's up to us to slit them between ourselves. I'm not sure how relevant it is to this but from what I've been told, the will was very badly written.
1) Since they died in 2004/2005, does that mean that the taxes and legal stuff were all worked out in 2005 and we'll have to pay those rates, or the rates from 2015?
2) If we're looking at 2015 rates, I know that the threshold for tax free inheritance is €225,000 for children. Is that for each of us? So we'll actually be able to inherit a total of €450,000 before we have to pay tax on it?
3) Is there anything we can do to try to reduce the amount of tax we'll have to pay or is it so late to be thinking about that that I'm stupid for even asking?
While we're at it because it's kind of related: My maternal grandmother has heart disease and doesn't have much longer to live. She has symptoms of dementia and wouldn't be capable of living independently. We've been living in her house (it was also my grandad's, but he died last year) for the past 10 years, which will have to be sold at auction but will probably go for somewhere around the million euro mark. We're not sure exactly what the situation with her will is because as I said, she isn't well in the head and keeps changing her mind. However it works out, she's adamant that my brother and I split what would have been our ma's share, which will either be half or a third depending on whether my uncle is cut of of the will or not (we're a wonderful family who love each other and always get along). Obviously, 33% of a million is a huge amount of money. My question is, might it be an option to get my granny to give the house to my aunt as a gift (gifts of dwellings can be tax exempt under certain criteria which I think we meet), and then when it needs to be sold, split the money however it needs to be split and just pay tax on the gifts?
Thanks
Both my parents both died a little over 10 years ago. Since my brother and I were both minors at the time, we didn't get access to our inheritance straight away. It was up to our aunt, who was also our legal guardian, to manage everything for us. The house has been rented out for most of that time and the money went into an account to split between us. Most other things went into the shed or attic.
We will be getting everything in February when my brother turns 18. The biggest thing would be the house, which I'm guessing will be valued somewhere between €400,000-500,000, based on the asking price for a house a few doors down in 2010. Plus other belongings, there are a few things that the will specified which one of us they should go to, but for the most part it's up to us to slit them between ourselves. I'm not sure how relevant it is to this but from what I've been told, the will was very badly written.
1) Since they died in 2004/2005, does that mean that the taxes and legal stuff were all worked out in 2005 and we'll have to pay those rates, or the rates from 2015?
2) If we're looking at 2015 rates, I know that the threshold for tax free inheritance is €225,000 for children. Is that for each of us? So we'll actually be able to inherit a total of €450,000 before we have to pay tax on it?
3) Is there anything we can do to try to reduce the amount of tax we'll have to pay or is it so late to be thinking about that that I'm stupid for even asking?
While we're at it because it's kind of related: My maternal grandmother has heart disease and doesn't have much longer to live. She has symptoms of dementia and wouldn't be capable of living independently. We've been living in her house (it was also my grandad's, but he died last year) for the past 10 years, which will have to be sold at auction but will probably go for somewhere around the million euro mark. We're not sure exactly what the situation with her will is because as I said, she isn't well in the head and keeps changing her mind. However it works out, she's adamant that my brother and I split what would have been our ma's share, which will either be half or a third depending on whether my uncle is cut of of the will or not (we're a wonderful family who love each other and always get along). Obviously, 33% of a million is a huge amount of money. My question is, might it be an option to get my granny to give the house to my aunt as a gift (gifts of dwellings can be tax exempt under certain criteria which I think we meet), and then when it needs to be sold, split the money however it needs to be split and just pay tax on the gifts?
Thanks