5 Ways to Avoid Inheritance Tax (Legally) in Ireland

[@malone_financial]

Rumour has it that if you subscribe to the channel Revenue will grant you a lifetime exemption from inheritance tax 🤯it's worth a shot right?

[@irinavasilica5871]

😂

[@simonmartin5048]

Absolutely excellent information perfectly articulated the use of trusts and loans avoid most of this i dont own the shirt on my back as you know loans are untaxable

[@mikolajpiotrowski5722]

Great video! Very informational, all of this makes me think… doesn’t this sound like we’re getting scammed ? 😂

[@jonto09]

Hi Dan,, my both parents are passed and I got a cat letter the other day House is worth 280,000 probate is just finished and I be the new owner of the house I living here since I was a child and planning on staying here till I die,, do I fall into the dewlling house,, and if I don't am I exempt from paying that tax.. Thank you

[@TheDanieldineen]

Hey Dan, any chance you would make a video about what tax law you should be looking at/taking advantage of when setting up a small service providing business? (From a small music therapy provider)! P.S. very niche topic so no pressure, I appreciate the videos you do make all the same! 👍

[@malone_financial]

Thanks for the suggestion Danny, I'll keep it in mind

[@TheDanieldineen]

Keep up the good work! 👍

[@malone_financial]

Cheers Danny!

[@colintwomey7554]

Hi Dan, question, under farm relief if you acquire agri property it reduces the value by 90%, can you still utilise your CAT allowance on top of that?

[@irinavasilica5871]

Thank you this is helpful. Where a person residing in Ireland , inherits a property in Uk, what are the inheritance tax implications ? Thank you

[@malone_financial]

Hey Irina! Ireland has a double taxation agreement with the UK for inheritance tax. Tax will arise it both jurisdictions, however you'll receive a tax credit against your Irish inheritance tax liability for the UK inheritance tax that you've paid

[@irinavasilica5871]

@@malone_financial means I’m liable to tax in UK only . Thank you 🙏🏻

[@jellyking21]

The reason for the below question is because I'm not sure why the solicitor hasn't mentioned any of what you have. House left to my father by his father. My father has lived in the house for over 10 years as a carer for both him mother and father before they passed. (so the 3 year relief is ok) So if the house is worth say 400,000. Being that he has lived in the house for over 3 years before the owners death. And my father is over 65 there shouldn't be any CAT to pay? The last comment you make is that if my father sells the property and buy something smaller. he would be replacing his main residence. But if he doesn't spent the entire 400,000 on the new property he would be taxed on 33% of 65,000 (assuming the new property he buys is 335,000. If he was to move to the England, Can you off set moving costs and solicitors fees? In short if over 65 and having lived in the house for 3 years before the death, you would still have to pay CAT if you didn't spend the full value of the inherited property. The reason for asking so many questions is because it seems crazy to have to wait 5 to 6 years, by which time his health might not be good enough to move to England. Just wonder if i should bite the bullet and persuade him pay the tax. And get more time with him in England.

[@declangraham2460]

Dan, great service you are providing. 2 questions, when dividend or accumulating etf's pay quarterly is the amount proportional to the time you have held it. If I buy the week before distribution will I benefit from the payment. Have you any recommendations for someone approaching retirement.

[@malone_financial]

Hey Declan! No, dividends are not paid proportionately based on ownership time. They're paid on a per share basis. Provided you own shares in the company/ETF before the 'ex-dividend date' you'll benefit from the payment. As for your second question, that's a 20 minute video in and of itself. I can add it to the list!

[@CompassionCrew]

Thanks for all this great info

[@matthewbrady2163]

Unrelated Dan, but could you add to your list of videos how someone would take cash out of their company and into their personal bank account. I'm aware of the CGT reliefs available and the pension, salary and dividend options but if the person was the 100% shareholder of a medium size business and wanted to extract for example €12 million how would they do this in the most tax efficient way? This example also takes into account that they will remain Irish domiciled for tax purposes. I was thinking selling the shares of the company and paying 33% CGT is probably the best option?

[@malone_financial]

Hey Matthew! Sure, I can add a video talking about tax efficient cash extraction to the list! It might be a while until I get around to doing it depending on how the video scheduling is looking (just as an FYI)

[@patrickswann2544]

I just found your channel. If I wanted to retire for a few years as a non dom in Ireland, but had a large investment in a US Schwab account all in an EFT - SCHD; all dividends stay in US until remitted over as needed....would this come into the 41% ?

[@hallyMUSICprojecT]

Great information, thanks... I am due to solely inherit the family home. I have recently moved back into the home due to separation from my wife. How many years must I be living at the home to be exempt from inheritance tax? Thanks again

[@malone_financial]

Hey there! This was all covered in the section about Dwelling House relief in the video.

[@acoyne174]

For Dwelling House relief, does this mean that a parent can buy a second home and have a son or daughter live in that house as their only residence and therefore the "child" qualify for this Dwelling House relief whilst retaining their CAT threshold?

[@malone_financial]

No because the inherited property also needs to be the only or main home of the individual who died.

[@K00014595]

Is there a way to avoid paying CGT on a gift over €32,500 from a brother?

[@malone_financial]

Are you talking about CGT or CAT? This video relates to CAT. If it's CAT, an option would be to drip feed the gift over time (if its cash) i.e. max €3,000 from the brother each year to be covered by the small gift exemption

[@K00014595]

@@malone_financial no it’s actually CGT as it’s a gift from a brother and not an actual inheritance. I think I’ve exhausted all options to be honest. I’m building a house and the gift is going towards the cost that’s why the €3,000 small gift every year doesn’t suffice in this situation unfortunately

[@malone_financial]

@@K00014595 CAT applies to gifts and inheritances George just FYI. CGT wouldn't be applicable here. But yes, if it's above your threshold then you'll be liable to tax at 33% on the excess

[@mixerD1-]

Is the relief treated differently if there's more than one inheritor Dan, eg divided up between siblings over a family home etc.? Thank you.

[@malone_financial]

Is this for Dwelling House Relief? If so, provided all siblings qualify and continue to meet all conditions then it can apply to multiple siblings!

[@mixerD1-]

@@malone_financial Y, that's what I meant, dwelling house relief. Thanks again Dan.🫡👍

[@andyryanair]

If you set up a joint bank account with your parent/ parents, are you liable to pay inheritance tax?

[@declanmcardle]

@10:03 Troika at work....10% reduction...

[@dev11223311]

Your income is taxed twiced in form of Inheritance tax. I never knew such taxes exist before coming to Ireland. There are many countries which do not have this tax, which is why so many millionaires have base in such countries.

[@waynemcsweeney1955]

Can I marry my mother after my father dies?

[@SilviaAlberini]

@malone_financial thank you for the video! I am resident in Ireland but I got an inheritance in Italy, where will I pay taxes? The double taxation agreement will exempt me from paying taxes in Ireland or will only deduct the taxes that I pay in Italy from the Irish tot amount? Thank you

[@Eiretraveller]

Ireland and tax😪

[@malone_financial]

I feel ya

[@ladynori]

Ridiculous a person is taxed for dying

[@gomey70]

@@ladynoriBut they're not. The person being left the inheritance is.

[@ladynori]

@@gomey70 nope they chose to give/spend their money to a child same as if they gave it to a repair man, clothing shop, or a cruise, they aren’t punished for those. I’ve worked slaved and paid my taxes what I do with my money is my business, my family doesn’t deserve to be worse off and suddenly receive a large tax bill just because I went on a long extended vacation…