- You can set up a policy to plan for the payment of inheritance tax in Ireland efficiently and in advance. For example:
- A Section 72 policy provides for an exemption from Capital Acquisitions Tax (CAT) for the proceeds of certain life policies taken out by a disponer specifically to pay inheritance tax on bequests made by them.
- A Section 73 policy provides for a similar exemption for the proceeds of certain insurance policies taken out specifically to pay CAT on gifts or inheritances arising on future gifts made by the insured person during his or her lifetime. Any part of such proceeds not used in this way is, however, liable to inheritance tax.
Inheritance Tax or Capital Acquisitions Tax (CAT) in Ireland is a tax on gifts and inheritances. You may receive gifts and inheritances up to a set value over your life before having to pay CAT. The standard rate for inheritance tax in Ireland is 33%.
| Type of pension | How does each type of cover help you? |
|---|---|
| Group A: €310,000 | Applies where the beneficiary is a child including adopted child, step-child and certain foster children) or minor child of a deceased child of the disponer. Parents also fall within this threshold where they take an inheritance of an absolute interest from a child. |
| Group B: €32,500 | Applies where the beneficiary is a brother, sister, niece, nephew or lineal ancestor or lineal descendant of the disponer. |
| Group C: €16,250 | Applies in all other cases. |
