How best to tackle the pressing matter of inheritance tax
Tax-free transfers to children are €310,000, but this is still well shy of pre-crash €542,000
If you have two children, that means anything above €620,000 will be subject to inheritance tax – formally known as Capital Acquisitions Tax – at 33%. File photograph: Getty Images
US President Donald Trump vowed to abolish it, but the Swedes did so. The Economist deems it a “fair” tax, philanthropist Chuck Feeney is avoiding it by giving away his fortune, while in Ireland friends are marrying each other to avoid it.
Without going to that extreme, there are steps you can take to mitigate – if not quite avoid – the burden of inheritance tax on those who live after you. After all, at a rate of 33 per cent, it can force your estate to liquidate assets just to meet the tax bill, or risk entering into a settlement with the Revenue Commissioners at a hefty tax rate of 0.0219 per cent a day, or about 8 per cent a year.