1 in 10 people in Ireland are cohabitating in Ireland.
Assets passing on death between married couples or civil partners are exempt from Inheritance Tax. BUT this only applies on the case of ”legal spouses” and same sex registered civil partners. All other couples are treated as strangers for inheritance Tax purpouses.
The stranger threshold for Inheritance Tax is currently €16,750.
Inheritances in excess of €16,750 are subject to a tax at 30%.
On the death of a non married partner Inheritance Tax will be payable on the total value of all assets,regardless of how long you have been toghter.
Lets look at an example.
John Browne and Mary White take out a ”Dual life” cover of €100,000.
They are joint owners and pay the premiums out of their joint account.
John dies and the €100,000 is paid to his partner Mary Smith because she is the surviving plan owner.
Assuming that Mary inherited no other assets, and Revenue agree that she has paid 50% of the benefit, her taxable inheritance is €50,000.
The threshold €16,750 is exempt, and the balance €33,250 is taxed at 30% = €9,975.
Mary is liable for a tax bill of €9,975.
Do you think that you would have the funds available to pay this tax bill?
Most of us would’nt! If you think that this affects you I would urge you to review your protection arrangements to ensure that you and your family receive the proceeds of your life assurance plan when you need it most in the most efficient way possible.
Do it today. Call 0719159222
Information is correct as at 1 February 2012 but is subject to change.