Planning for the next generation is becoming a very popular and key part of financial planning. Strategically passing your assets to your children can minimise the tax liability they may face upon your death. As of 2017 the maximum amount that parents can bequeath to a child is €310,000. This may include the family home. Any excess on this is taxed at 33%.
Some reliefs exist and should be explored before formulating a succession plan. These are:
Exemption Limits for children and grandchildren and one off gifts.
Section 72 Life Insurance Relief
Annual Small Gift Exemptions Relief.
Family home relief.
In certain cases determining the possible liability may be complex and we may recommend that a tax lawyer is used to ensure all reliefs are utilised correctly.