Kildare people encouraged to avail of inheritance tax changes by making a will

Now is the time to make or update your Will, Kildare residents have been advised. The advice from umbrella group My Legacy – which represents over 90 Irish charities – comes after Minister for Finance Jack Chambers announced changes to inheritance tax thresholds in Budget 2025.

Mr Chambers told the Dáil last week (01.10.24) that inheritance tax thresholds will be increased across all categories, meaning that the amount children can inherit from their parents, tax-free, will increase from €335,000 to €400,000. For grandchildren, siblings, nieces and nephews, the tax-free allowance will increase from €32,500 to €40,000 while other relationships can benefit by a further €3,750, tax-free, up to €20,000.

My Legacy Board Member, solicitor Bernadette Parte, says people across the country, including Kildare, should take this opportunity to make or update a Will: “Whether or not you already have a Will in place, the updates to inheritance tax thresholds in the Budget are a good incentive to take action. These changes to inheritance tax thresholds could have a significant impact for many people in Kildare.”

“A recent Red C poll carried out by My Legacy found that only 27% of over 18s in Ireland have made a Will, although the importance of having one is widely understood. Many people put off making a Will because they think it will be a complicated or expensive task, but the fact is, it’s a simple, straightforward experience and it’s in the interest of you, your loved ones, and wider society that everyone has a Will.”

Chair of My Legacy, Niall O’Sullivan says that “By making or updating your Will, you have an opportunity to take care of loved ones and ensure your wishes are known and will be respected. You also have the opportunity to remember a cause close to your heart, by including a gift for a charity in you Will. No matter how small or large your gift, the amount you include will be tax-free to the charity so it can have an enormous impact on the good work that they do.”

Budget a missed opportunity for philanthropy

O’Sullivan added that in their Budget 2025 statement, the Government has missed an important opportunity for Irish charities.

“In our pre-budget submission to the Government, My Legacy called for tax incentives to encourage gifts in Wills. Currently only 14% of those who have made a Will, have included a gift for a charity – that represents a huge potential for future giving. Imagine the impact this extra funding could have for good causes like cancer research, supporting the elderly, tackling educational disadvantage, supporting communities in need overseas and much, much more.

“By introducing tax incentives to include a gift for a charity in Wills, the Government would not only increase the potential giving for Irish charities, but it would also incentivise people to make their Will and include a charity.

“In our recent Red C poll 35% of those that either don’t have a will or have one without a gift to charity in it say they would be open to including a gift in their Will if a tax benefit were available.”

For more information visit www.mylegacy.ie.