Succession planning (sometimes known as inheritance planning) is hugely underused in Irish society. As a result, Revenue take in huge receipts on ill-prepared deaths in the form of inheritance tax. In 2018 alone, Revenue took in €466m in inheritance tax receipts. This has increased from €186m in 2010 (250% increase). In the same period, gift tax has remained relatively constant and minuscule in comparison (2018: €52m Vs 2010: €46m – although Revenue receipts did decrease in between). The difference between inheritance tax and gift tax is whether the assets are passed on death or not. This indicates to me that people plan their gifts while they are alive but not so much when they die.
CAT (which is inheritance and gift tax combined) is considered by many to be a very unfair tax. The reason for this is that an individual pays tax to accumulate assets during their lifetime either through income tax (up to 52%), CGT (33%) or CAT (33%). Then, the asset is taxed again on death when passing their estate to their loved ones. So why do you not hear more complaints about it?
