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Some time ago I spoke about this in a video, but I wanted to revisit it because it’s one of those small details that can make a very big difference.
I’m also including a draft clause that you can discuss with your own solicitor when making or updating your Will.
Before you read it, let me explain why it matters.
Imagine you own a house and you know that, after your death, your beneficiaries will almost certainly sell it. It doesn’t matter whether you’re leaving it to your children, nieces, nephews or anyone else.
In one recent case, a lady left her home equally to her son and daughter. After she passed away, they agreed to sell the property, exactly as their mother would have expected.
The estate also contained a substantial amount of cash. The beneficiaries value of their inheritance was so substantial, it meant that there would be inheritance tax payable by them.
By the time the house was sold, the legal fees for the sale and auctioneer’s fees came to almost €20,000.
The beneficiaries’ accountant tried to claim those selling costs as a deduction against their inheritance tax liability.
Unfortunately, Revenue would not allow it.
Why?
Because the will didn’t DIRECT that the property should be sold.
The beneficiaries made that decision after their mother’s death.
Had the Will specifically directed the sale of the property, those costs could potentially have reduced their inheritance tax liability.
It’s a simple clause, but one that can make a real financial difference in the right circumstances.
Click on the link below where you will find some precedent clauses you can discuss with your solicitor to see which suits your circumstances.
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