Spiralling property prices make death taxes a live issue for more unsuspecting families
Death taxes are set to deliver a bountiful return to the Exchequer this year. But the chances of any changes in the Budget to benefit families look to have been ruled out by Taoiseach Leo Varadkar. This is set to annoy many middle-income people.
A survey commissioned by Irish Life shows that thousands of families are set to be hit with huge tax bills when they inherit homes due to rising property prices.
But the really worrying aspect of this is that half of those surveyed are labouring under the misapprehension that their family home is exempt from inheritance tax.
Revenue figures show the money paid in inheritance tax has doubled since 2010, reflecting sharp rises in the value of homes.
Close to €500m is expected to be paid this year in what is often dubbed 'death taxes', accrued from older parents passing on homes, farms and businesses.
Strong rises in property values have left thousands vulnerable to large tax bills, but many do not realise they will have to pay Revenue when they inherit the homes.
The survey also shows 84pc of people don't know the current inheritance tax rate, which could seriously affect inheritance for their family. Worryingly, less than half of people have made a will. This could mean there is trouble in store for many families.
The Irish Life survey shows one in five of those over the age of 55 expects to leave more than €500,000 in inheritance to their families.