Under the CAT regime, the tax-free lifetime thresholds were increased by approximately 5% for gifts and inheritances taken on or after 7 October 2026. The Group A threshold, which generally applies to gifts or inheritances received by children from their parents, increased from €400,000 to €420,000. The Group B threshold, which applies to certain close relatives such as siblings, nieces, nephews and grandchildren, rose from €40,000 to €44,000. The Group C threshold, which applies to all other beneficiaries, increased from €20,000 to €22,000. The CAT rate itself remains unchanged at 33%.

Alongside these changes, the Government reduced the standard CGT rate from 33% to 31% for disposals made on or after 7 October 2026.

The combined impact of the CAT and CGT changes is particularly relevant for family wealth transfers. For example, parents transferring assets to children can now pass a greater amount tax-free under the CAT regime, while any CGT arising on the disposal of those assets will be taxed at a lower rate.

While the reductions are relatively modest, they represent a positive development for succession planning and estate management. Individuals considering significant gifts, inheritances or asset transfers should review their arrangements to determine whether they can benefit from the revised thresholds and lower CGT rate.

If you would like advice on succession planning, or help with any other legal matter, please contact us here or email us at info@mcgrathmullan.ie.

More Legal News from McGrath Mullan Solicitors:

• Capital Acquisitions Tax (CAT) in Ireland
• Voluntary Transfers from Parent to Child – Key Considerations
• Voluntary Transfer of Property or Land
• The Importance of Making a Will
• Wills and a Child’s Entitlements
• Wills and a Spouse’s Legal Right Share
• Rights of Residence
• Probate: 10 steps to kick-start the administration process
• Affidavit of testamentary capacity
• Citations in Probate: What to Do When an Executor Delays Grant of Probate

Before transferring property to a child, it is important to understand the legal and financial consequences and to ensure that appropriate protections are in place.

1. Don’t Assume There Are No Tax Consequences

One of the most common misconceptions is that transfers between parents and children are tax-free.

Depending on the circumstances, the following tax implications may arise:

• Capital Acquisitions Tax (CAT)
• Capital Gains Tax (CGT)
• Stamp Duty

Obtaining tax advice before a transfer takes place can help identify available reliefs and avoid costly surprises.

2. Protect Your Right to Remain in the Property

Many parents transfer ownership of their home to a child without formally protecting their right to continue living there.

A properly drafted right of residence or right of occupation can provide security and peace of mind, particularly if family circumstances change in the future.

3. Consider the Impact on Other Family Members

A transfer to one child may be entirely justified, but if the reasons are not clearly communicated and documented, it can create misunderstandings and disputes among siblings later.

Careful succession planning can help avoid family conflict and ensure that your intentions are understood.

4. Think About Future Care Needs

Transferring property can have implications for long-term care planning, including potential considerations under the Fair Deal Scheme.

What appears beneficial today may have unforeseen consequences in later years if future care requirements arise.

5. Review Your Will

Once a property has been transferred, your existing will may no longer reflect your intentions.

For many families, a property transfer is one of the most significant financial decisions they will ever make. Taking both legal advice and tax advice at an early stage can minimise tax exposure and ensure that your wishes are carried out as intended.

More Legal News from McGrath Mullan Solicitors:

• Transfer of the family home from sole name into joint names of both spouses 2024
• The Importance of Making a Will
• Wills and a Child’s Entitlements
• Wills and a Spouse’s Legal Right Share
• Section 117 Applications – Where a parent has failed to provide for a child in their Will
• Disputing a Will in Ireland
• Affidavit of testamentary capacity
• Probate: 10 steps to kick-start the administration process
• Citations in Probate: What to Do When an Executor Delays Grant of Probate
• Enduring Power of Attorney

But if you lose mental capacity, who can make that decision for you? 

You can give an instruction now which will be effective if you lose capacity.  It is called an Advance Healthcare Directive (sometimes known as a ‘living will’).

Like a will, it must be properly executed to be effective, and it can be revoked if one has capacity.

You can include refusals of life sustaining treatment.

And you can choose someone you know and trust as your designated healthcare representative to make sure people respect your advance healthcare directive.

This healthcare directive cannot be covered in an EPA and is a separate document. 

The form is simple, but the issues are big and require careful consideration.

If you would like help with this or any other legal matter, please email us here info@mcgrathmullan.ie or contact us here.

More legal articles and news from McGrath Mullan:

• Why Recognising Foreign Divorces Matters in Irish Probate
• Affidavit of testamentary capacity
• Wills and a Child’s Entitlements
• Probate: 10 steps to kick-start the administration process
• The Importance of Making a Will
• Wills and a Spouse’s Legal Right Share

However, after death, a child can make a claim to the court under section 117 of the Succession Act 1965 seeking a share of the parent’s estate on the following grounds:

The parent ‘has failed in his moral duty to make proper provision for the child in accordance with his means’.

In considering section 117 claims, a court will consider the entirety of the parent’s affairs. Certain criteria to consider were set out by Court in 2003 in ‘In the Estate of ABC deceased XC, YC & ZC v RT, KU & JL [2003]’ which include:

1. Is the child of an age and situation in life where they may reasonably expect support from their parent;
2. Did the parent owe a moral duty to provide for the child, and did he in fact fail that duty;
3. Has the parent made provision for expensive education or other gifts, which would discharge the moral obligation;
4. ‘Proper provision’ is to provide within the parent’s means – but this does not mean it must be adequate;
5. Has the child an exceptional talent that should be fostered;
6. Has the child a physical or mental disability;
7. Has the child worked, for example, on the parents farm, and lived with the assumption it would ultimately be his;

Although a court has very wide powers to make provision for an applicant child, it cannot in effect make a new will for the parent.

Any claim must be brought within 6 months of a Grant of Probate or a Grant of Probate with Will Annexed issuing from the Probate Office. There is no need for the personal representative to notify any child of their entitlements to bring such a claim.

For more information on children’s entitlements contact Hannah Clinton. Please get in touch with McGrath Mullan info@mcrgrathmullan.ie  or call us here +353 (0) 1 873 5012 .

For more Probate resources from McGrath Mullan

• Probate: 10 steps to kick-start the administration process
• The Importance of Making a Will
• Wills and a Spouse’s Legal Right Share
• Irish Grant of Probate, foreign domicile
• Probate and the Rights of Co-Habitants

Under the provisions of Section 111 of the Act, where a deceased has left a will, regardless of the terms of it, a spouse is automatically entitled to half of a deceased’s estate where there are no children and 1/3 of the estate where there are children.

In the event that a spouse is left less than the legal right share in a deceased’s will, he or she can elect to take the legal right share in place of the bequest under the will.

It may also be possible to take the family home in satisfaction of this legal right share.

The executor is obliged to inform the spouse of this entitlement and strict time limits apply. If you have any questions about a Legal Right Share please contact Julie Mullan.  info@mcgrathmullan.ie

More legal articles on probate from McGrath Mullan:

• Probate and the Rights of Co-Habitants
• Irish Grant of Probate, Foreign Domicile
• Disputing a Will in Ireland
• Probate: 10 Steps to Kick-Start the Administration Process
• Section 117 Applications – Where a parent has failed to provide for a child in their Will
• Options when an executor fails to administer an estate
• Irish Grant of Probate with UK domicile
• Irish Grant of Probate, foreign domicile

With so many ex-patriots throughout the world, this is not surprising, with holiday homes, Euro bank accounts and shares being the most common assets.

In assessing the steps involved, consideration has to be given to how the relevant country of domicile’ probate legislation compares with ours and the language of the country. Applications can be tricky, not least because resources within the Probate Office do not allow for pre-approval of applications or admissibility of, for example, an Affidavit of Law. Nonetheless, we can navigate applications successfully and quickly.

By far the most common application is from the UK, but we have also dealt with applications where the deceased died domiciled in USA, Canada, South Africa, Germany and China.

We can help in advising the applicants of the necessary legal proofs, assisting with obtaining PPS (tax) numbers for deceased persons and beneficiaries and drafting and submitting the Probate applications,

For assistance or inquiry, contact Julie Mullan, info@mcgrathmullan.ie.

More from McGrath Mullan Legal News:

• How to Apply for an Employment Permit in Ireland: A Guide for Employers
• Irish Citizenship for Children
• Disability Allowance & Visa Sponsorship
• Transfer of First-Time Immigration Registration to ISD
• Retiring to Ireland with Sufficient Resources
• Three Requirements for Divorce in Ireland