The question of early inheritance and the distribution of an estate is one that requires careful consideration of the legal and tax implications.
Caitriona Gahan, Head of our Wills, Probate & Estate Planning Team recently contributed to an Irish Independent article answering a reader’s question about the potential receipt of early inheritance and the equitable distribution of an estate between siblings.
In terms of the reader’s dilemma, which asks whether the parents’ in question would consider giving their daughter early inheritance, Caitriona outlined some of the legal principles and tax implications that need to be considered around the distribution of an estate:
“Children have no specific entitlement to a share in their parents’ estate. There is no requirement in law for a parent to distribute their estate equally between their children. Lack of equality would not be a ground for making an application under section 117″.
Tax Implications
“Looking at the matter from a moral perspective, it depends on the value of the parents’ assets and the tax implications of disposing of an asset during their lifetime rather than on death,” she adds. “A charge to Capital Gains Tax could arise on the disposal, which would not arise on a disposal by will.”
Gahan points out that the parents’ age and overall health also have to be considered. “If the parents were my clients, I would caution them to be sure that the remaining assets they hold are sufficient to provide for their future without restriction. If not, I would caution them against facilitating their daughter. If their resources are such that it is clear they have sufficient funds and assets to provide properly for their future, then I do not see any reason that they could not make an advancement of the intended inheritance to their daughter.”
Early Inheritance
In terms of the sibling in question broaching the topic of early inheritance with her parents, Gahan notes that the other siblings “have no right to prohibit you from talking to your parents. If such a discussion does take place, it is essential that no pressure is brought to bear and the writer accepts her parents’ decision from the outset, even if it is a flat refusal.”
Modern Morals: I’m broke — is it ok to ask my parents for my share of the inheritance now? (Irish Independent, July 2024)
Further Information
For further details on inheritance or the administration of an estate, please contact solicitor Caitriona Gahan, Head of our Wills, Probate & Estate Planning Team.
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