Case Studies
Saving Gift & Inheritance Tax
| Substantial gift and inheritance tax savings can be made by spreading value throughout the extended family. | |||
| This uses up the various tax free thresholds available for children, their spouses, and grandchildren. | |||
| Inheritance Tax Analysis | |||
| Value of Estate | € 1,500,000 | ||
| 3 Children – estate split evenly | |||
| Tax Free Threshold | 280,000 each | € 840,000 | |
| Taxable portion of the estate | € 660,000 | ||
| Inheritance Tax | 33% | € 217,800 | |
| If value is passed to the extended family | |||
| Value of Estate | € 1,500,000 | ||
| Each child inherits 1/3rd of Estate | 500,000 | ||
| Child 1 | € 280,000 | ||
| Spouse | € 15,075 | ||
| 2 Grandchildren | € 60,300 | ||
| Child 2 | € 280,000 | ||
| Spouse | € 15,075 | ||
| 3 Grandchildren | € 90,450 | ||
| Child 3 | € 280,000 | ||
| Spouse | € 15,075 | ||
| Taxable portion of estate | € 464,025 | ||
| Inheritance Tax | 33% | € 153,128 | |
| Tax Saving | € 64,672 | ||
| Tax saving depends on each individual family’s circumstances | |||
