Question: Neither of my parents have ever made a will and I know that the family home is still in the name of my Grandfather who is now deceased. Is this something that needs to be addressed immediately?
Answer: This is a serious situation and it is important that your parents get legal advice immediately. If this is not done and they both pass away without doing so, then there will be a legal “quagmire” to be dealt with.
Very often, for some reason, there seems to be a lack of awareness, sometimes in rural areas, about transferring property title within families when somebody dies. Obviously I am not a Solicitor, but I have come across similar situations in the past and cannot overstate the importance of getting legal advice immediately.
Question: I want to give a gift to my son and I am wondering does this have an impact on him if I die. Will he have to pay inheritance tax?
Answer: It is important to be aware that there is a lifetime limit, which includes both gifts and inheritance, from parent to child of €225,000. So for example, if you give them a gift now of €50,000 they will be able to inherit or receive future gifts from you up to a maximum of €175,000 before becoming liable for tax. Above this limit inheritance tax of 33% on the balance applies.
Question: I am looking to rent a room in my home and I understand there is a tax free allowance for this. Is this correct?
Answer: As we have seen recently there has been a considerable upsurge in students looking for ‘Digs’ due to the lack of availability of properties in the rental market. If you rent out a room in your own home you can earn up to €10,000 p.a. tax free. I stress it has to be your family home and if the amount exceeds €10,000 then you will be liable for tax on the entire rent you receive.
Question: I have some shares in Bank of Ireland which I have bought at a much lower price than they are today. What tax will I pay on any profits I have made and is there any annual tax free allowance on this?
Answer: It is positive to see that somebody is making money on bank shares! You are liable for 33% Capital Gains Tax on the profit that you made less an annual allowance of €1,270 per person.