Tailored Inheritance Planning to Protect Your Family’s Future

Capital Acquisitions Tax (CAT), commonly known as inheritance tax in Ireland, is charged at 33% on the value of assets above the tax-free threshold. The threshold varies based on the relationship between the deceased and the beneficiary, with different group thresholds applying.

You can reduce inheritance tax through various strategies such as Section 72 life insurance policies, utilising annual gift exemptions, structured tax-efficient savings plans, and exploring agricultural or business relief. Our advisors can guide you through these options to optimise your estate planning.

A Section 72 policy is a specialised life insurance policy designed to cover inheritance tax liabilities. When you pass away, the policy pays out tax-free, helping your beneficiaries avoid selling inherited assets to cover tax liabilities, thus preserving the value of your estate.

In Ireland, you can gift up to €3,000 per person per year tax-free under the small gift exemption. This exemption doesn’t count toward the overall inheritance tax threshold, allowing you to gradually transfer wealth without triggering additional taxes or reducing available tax-free thresholds.

Section 73 policies allow you to save tax-efficiently to cover potential gift tax liabilities. By setting up this structured savings plan, your beneficiaries can be protected from having to cover tax on substantial gifts received during your lifetime, facilitating smoother wealth transfer.

The Group B inheritance tax threshold for grandchildren in Ireland is €32,500 as of 2023. Any amount above this threshold is subject to Capital Acquisitions Tax at 33%. Proper inheritance planning can help maximise the use of this threshold and minimise potential tax liabilities.