'How much inheritance tax will our son have to pay when we die?'

The article addresses inheritance tax planning for a family home valued at €800,000. The son may qualify for a €400,000 tax relief, with limited options to reduce capital acquisitions tax (CAT). Including grandchildren in the will can broaden tax-free thresholds. If the son fulfills residency requirements, he might claim dwelling house exemption. Trusts, both fixed and discretionary, do not provide tax advantages and may incur additional taxes. Annual gifting between parents may also help manage tax responsibilities effectively.

Maximizing the tax-free thresholds at the date of death is vital for limiting exposure to capital acquisitions tax, particularly for inheriting property.

To claim dwelling house exemption, conditions must be met, including living in the inherited property for six years post-death.

Read at Irish Independent