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Wills ^& Probate

Tax Considerations

When making your Will you should consider the effect of Capital Acquisition Tax (CAT) more commonly known as Inheritance Tax. Inheritance Tax is a tax which can arise where you leave a gift or a share of your estate to someone in your Will. The person receiving the inheritance is the person responsible for paying the tax.

Note: An inheritance received from your husband or wife is not liable to inheritance tax.

If you leave property by Will to someone other than a spouse then they may be liable to pay inheritance tax. Inheritance tax may arise when a person receives an inheritance that exceeds a given threshold.  A threshold is the amount a beneficiary is allowed to receive without having to pay tax. A person’s threshold is determined by your relationship to the person from whom you are receiving your inheritance. Different tax thresholds apply depending on the relationship between the deceased person and the beneficiary. The amount of inheritance received above the applicable threshold is the amount liable to tax at a rate of 33%.

In calculating if a person will pay inheritance tax you need to also take into account whether a person has received other gifts or inheritances since 5 December, 1991. If a person, since the 5th December 1991, had previously received a gift/inheritance which resulted in their entire threshold being used up, then any gift you now give them in your Will will be subject in its entirety to 33% tax.

There are certain inheritance tax reliefs available which may apply to beneficiaries in your Will. Each of the relief’s are dealt with in detail in the inheritance section of our website. The reliefs include:

  • Business Relief
  • Agricultural Relief
  • Dwelling House Relief
  • Favourite Nephew/Niece relief
  • Relief for a Minor Child of a Deceased Child
  • Heritage Property & Heritage Property of Companies

As specialist solicitors in Wills and Probate we have the experience and expertise to advise you in all aspects of making your Will, including inheritance tax consideration. if you would like to discuss any aspect of making a Will, please contact us to arrange a convenient appointment.


tel: 061 599 033 email: visit us: 64 O'Connell Street, Limerick Opening Hours: Monday - Friday 9.00am to 5.30pm. Saturdays by Appointment