Navigating Inheritance: Unmarried Son Dies Abroad Before Fathering Child-Who Inherits? – The Irish Times

Inheriting Across borders: Navigating Complex Estate Issues After a Son’s Death

A reader recently sought advice regarding the estate of their son, who tragically passed away shortly before the birth of his first child while living abroad in Germany. The situation raises complex questions about inheritance rights and potential tax implications, highlighting the importance of seeking professional legal counsel.

The core issue revolves around who will inherit the son’s estate – his newborn child or his partner. Under German law, a child born alive has primary inheritance rights. This means the child would inherit the entirety of the estate, including any assets like property, up to a tax-free threshold of €400,000.

Beyond this threshold, inheritance tax in Germany operates on a sliding scale:

€75,000: taxed at 7%
€75,000 – €300,000 above the tax-free threshold: taxed at 11%
€300,000 – €5.4 million: Taxed at 15%
€5.4 million – €7 million: Taxed at 19%
€7 million – €13 million: taxed at 27%
Over €13 million: Taxed at 30%

These rates are generally lower than Ireland’s flat 33% rate for inheritance tax. The same tax bands and rates apply to parents inheriting under German law, though their tax-free threshold is lower, at €100,000.

However, if the child is not born alive, the inheritance would likely pass to the son’s partner. In this scenario, the tax-free threshold for transfers to the partner is considerably lower, around €20,000, possibly resulting in a ample tax liability.

The advice underscores a critical point: assuming the child is born alive, the partner would not inherit from the son’s estate. The reader was cautioned that the initial assessment was based on limited information and that both the mother and the partner should seek autonomous legal advice to confirm their respective positions.

beyond the legal complexities, the situation presents significant practical challenges for the son’s partner, notably in maintaining their home and raising a child as a single parent, especially without the benefit of life insurance.

This case serves as a stark reminder of the importance of estate planning, particularly for individuals living and working abroad. Navigating international inheritance laws can be incredibly complex, and professional guidance is essential to avoid misunderstandings and ensure a smooth transfer of assets.

Disclaimer: This article provides general information and is not a substitute for professional legal or financial advice. Readers should consult with qualified professionals for guidance tailored to their specific circumstances.

What steps should be taken to initiate teh inheritance process when an unmarried son dies abroad without a will?

Navigating Inheritance: Unmarried Son Dies Abroad Before Fathering Child – Who Inherits?

The death of a loved one is always difficult, and the complexities surrounding inheritance law can add meaningful stress, particularly when the deceased dies abroad.This is especially true when considering the situation of an unmarried son who passes away before having children.Irish inheritance rules differ substantially depending on marital status and the presence of direct descendants. this article, published on archyde.com, breaks down the key considerations for families facing this challenging scenario. We’ll cover intestate succession, potential claimants, and steps to take to ensure a smooth process.

Understanding Intestacy in Ireland

When someone dies without a valid will in Ireland, they are said to die intestate. The rules of intestate succession dictate how their estate is distributed. these rules prioritize certain family members. For an unmarried individual with no children, the distribution is quite specific.

Parents: The entire estate generally passes to the deceased’s parents,divided equally between them if both are living.

Siblings: If the parents are deceased, the estate passes to the deceased’s siblings, again divided equally.

Further Relatives: If there are no parents or siblings, the estate moves to other relatives, following a defined order of priority (grandparents, aunts/uncles, cousins, etc.).

this means,crucially,that in the absence of a will,a partner – even a long-term partner – has no automatic right to inherit. This is a common point of contention and highlights the importance of will writing.

The Impact of Dying Abroad

The location of death doesn’t fundamentally alter who inherits under Irish law, but it significantly impacts how the inheritance process is managed.

Jurisdiction: determining which country’s laws apply (Irish law in this case, assuming the deceased was domiciled in Ireland) is the first step. Domicile refers to the country where a person has their permanent home,and it’s not necessarily the same as their nationality.

Foreign Probate: If assets are located outside of Ireland, obtaining foreign probate may be necessary. This involves applying for legal recognition of the Irish inheritance process in the foreign jurisdiction. This can be a complex and time-consuming process, frequently enough requiring the assistance of a solicitor specializing in international probate.

Asset Identification: accurately identifying all assets, both in ireland and abroad, is crucial. This includes bank accounts, property, investments, and personal possessions.

Who Can Claim Against the Estate?

Even with clear intestate succession rules,potential claims against the estate can arise.

Dependants: Under the Succession Act 1965, certain individuals can make a claim for “reasonable provision” from the estate, even if they aren’t specifically named in a will (or covered by intestacy rules). This typically includes financial dependants, such as a partner who was financially supported by the deceased. While an unmarried partner doesn’t have automatic inheritance rights, they can make a claim if they can demonstrate financial dependency.

Creditors: Any outstanding debts of the deceased must be settled before any inheritance is distributed. This includes mortgages, loans, credit card debts, and taxes.

Revenue Commissioners: The Revenue Commissioners (Irish tax authority) will be involved to assess any potential inheritance tax (CAT – Capital Acquisitions Tax) liabilities.

Capital Acquisitions Tax (CAT) Considerations

Inheritance tax in Ireland, known as Capital Acquisitions Tax (CAT), applies to gifts and inheritances. The current CAT threshold (as of 2025) is €335,000.This means that if the value of the inheritance exceeds this amount, CAT will be payable at a rate of 33%.

Group A Beneficiaries: Parents, spouses, civil partners, and children are considered Group A beneficiaries and have the highest CAT threshold.

Group B Beneficiaries: Siblings, grandparents, aunts/uncles, nieces/nephews are Group B beneficiaries and have a lower threshold.

Group C Beneficiaries: All other beneficiaries fall into Group C and have the lowest threshold.

In the scenario of an unmarried son dying intestate, his parents (Group A) would inherit, and the CAT threshold would apply accordingly.

practical Steps to Take

Navigating this process can be overwhelming. Hear’s a checklist of essential steps:

1. Obtain a Death Certificate: A certified copy of the death certificate is required for all legal and administrative processes.
2. Identify Assets: Compile a comprehensive list of all assets, including bank accounts, property, investments, and personal belongings.
3. Engage a Solicitor: A solicitor specializing in probate law and, ideally, international probate is crucial. They can guide you through the legal complexities and ensure compliance with Irish law.
4. Apply for a grant of Letters of Governance: Since there is no will, you’ll need to apply for a Grant of Letters of Administration, which authorizes the administrator (usually a close family member) to manage the estate.
5. Notify Relevant Institutions: Inform