€466 Million of Inheritance tax was paid to the Revenue Commissioners in 2019 by just over 15,000 people with the average payment amounting to €31,000!
Having open conversations with your children and expressing your wishes and goals will also ensure that your family are all on the same page, which can help reduce potential conflicts later on. Effective planning can save families potential Inheritance Tax bills amounting to hundreds of thousands of euro and aims to ensure that the hard earned wealth of a lifetime is distributed to the right people, at the right time and as tax-efficiently as possible.
There are several steps an individual can make while they are alive to help manage CAT on their estate and a good approach is to introduce your children to your professional advisers so the advisers such as Eolas Money can provide guidance and reassurance to both parents and children.
Some of the keys steps to consider when planning to mitigate Inheritance Tax include the following
- Utilisation of Tax-Free Thresholds
- Small Gift Exemption
- Payments for maintenance, support, or education
- Dwelling House Relief
- Paying CAT bills on your children’s behalf
- Insuring against inheritance tax?
- Making a will.
If Eolas Money can assist you or your family with any inheritance tax queries, please don’t hesitate to contact us.