I am informed by the Revenue Commissioners that based on the details supplied the position in relation to the various taxes is as set out below: On the basis that none of the three sons received any prior gifts or inheritances since 2 June 1992, each son would be entitled to avail of a tax free threshold of £174,000. On that basis no inheritance tax liability would arise.
Assuming no exemptions, probate tax at the rate of 2 per cent would be payable on the value of the net estate at the date of death, inclusive of the house. Where, in the year 1994, the house was occupied by the deceased as his/her principal private residence at the date of death it was entirely exempt if there was a surviving spouse. Where there was no surviving spouse that portion of the house passing to a dependent relative was exempt. It was necessary that the dependent relative normally resided in the house at the date of death; and had income not exceeding a specified amount £4,023 in 1994.