Inheritance tax Ireland: Everything you need to know

Inheritance tax Ireland: What is it?
Inheritance tax, also known as capital acquisitions tax (CAT), is a tax on the value of an individual's estate when they die. It is levied on the value of the estate after deducting any debts and expenses.
The current rate of inheritance tax in Ireland is 33%. However, there are a number of exemptions and reliefs that may reduce the amount of tax that you have to pay.
Inheritance tax Ireland: Who pays it?
Inheritance tax is payable by the beneficiary of the estate. This means that if you inherit property or money from someone who has died, you may have to pay inheritance tax on the value of the inheritance.
Inheritance tax Ireland: How much is it?
The amount of inheritance tax that you have to pay will depend on the value of the estate and your relationship to the deceased.

Group A: This includes gifts and inheritances from spouses, civil partners, children, grandchildren, parents and grandparents. The threshold for Group A is €335,000.
Group B: This includes gifts and inheritances from brothers, sisters, nieces, nephews, uncles and aunts. The threshold for Group B is €32,500.
Group C: This includes gifts and inheritances from all other people. The threshold for Group C is €16,250.

Inheritance tax Ireland: How to avoid it
There are a number of ways to avoid inheritance tax in Ireland. These include:

Making gifts during your lifetime: Gifts made during your lifetime are not subject to inheritance tax. However, there are certain rules that must be followed in order to avoid the gift being treated as part of your estate for inheritance tax purposes.
Setting up a trust: A trust is a legal arrangement that allows you to transfer assets to a trustee for the benefit of beneficiaries. Trusts can be used to reduce inheritance tax by ensuring that the assets are not included in your estate when you die.
Taking out life insurance: Life insurance can be used to pay inheritance tax on your estate. This can help to reduce the financial burden on your beneficiaries.

Inheritance tax Ireland:
Inheritance tax can be a significant financial burden for beneficiaries of an estate. However, there are a number of ways to avoid inheritance tax or reduce the amount of tax that you have to pay. If you are concerned about inheritance tax, you should seek professional advice from a tax advisor.