A Will is one of the most important documents a person will execute during their lifetime in relation to their assets yet nearly two thirds of Irish people do not have a Will in place.
Ireland has one of the highest death taxes in the world (currently at 33% ). In order to minimise Irish inheritance tax, ensure your Will is ‘tax efficient’. As tax specialists, we also work closely with a local legal and trust Solicitor who is an expert in this field.
Some key things to consider are as follows:
1. Do you have business or agricultural assets?
The taxable value for inheritance tax purposes of qualifying business or agricultural assets can be reduced by 90% provided certain conditions are met. E.g., shares in a family business of €600,000 would have a taxable value of €60,000 for inheritance tax purposes.
2. Always consider the use of Trusts.
The use of correctly drafted trusts in Wills ensures that beneficiaries can avail of the relevant inheritance tax reliefs for agricultural and business assets. A trust can be used to hold the assets until a point in time when the beneficiary can satisfy the conditions of the relief.
3. Do you have minor children or other vulnerable beneficiaries?
Always ensure a proper trust is in place to hold assets until children are suitable to inherit. You may have beneficiaries who have addictions, banking issues or marital issues and a trust is a very useful tool to protect such persons.
4. Do any of the beneficiaries of your estate have a disability (physical or mental )?
A beneficiary with a disability can receive certain inheritances free of tax if the proper structures are put in place under the Will.
5. Are you in a relationship but unmarried?
Unmarried couples have limited legal or tax rights. Ensure you have a proper Will in place to protect each other on death and understand the tax implications of doing so.
The above information should be treated as a guide only. If you would like us to review your Will or provide you with assistance in making your Will tax efficient, please contact us by phone: 091 592080 or by email: [email protected].