WEALTH September 7, 2026 0 Comments

The Shocking Truth Behind Inheritance Tax: Why This ‘Injustice’ Could Wreck Your Legacy Forever

Ever wonder why your childless aunt might get hit with a much heavier inheritance tax bill than her sibling with kids? Sounds bonkers, right? Yet, here we are, stuck in a system where passing down family property isn’t just about legacy—it’s a financial quagmire that disproportionately punishes those without children. James Sexton from End Discrimination in Inheritance Tax (EDIT) is calling out the Minister for Finance for ignoring this glaring inequality—no surprise the government’s Budget 2027 plans are leaving childless couples and LGBTQ community members out in the cold. Imagine facing a €118,000 tax just because your loved one wasn’t your son or daughter… That ain’t fairness; it’s a tax trap that risks wiping out family homes that have stood for generations. Inheritance tax pulls in around €1 billion a year for the State, but should it cost some families so dearly just because of who they can—or can’t—call their own? Looks like the fight for equal footing in inheritance tax is far from over. LEARN MORE

A group lobbying to make inheritance tax more fair has slammed the Minister for Finance after it emerged there are no plans to equalise the tax for childless couples who wish to pass on property to a niece or nephew, writes Ken Murray.

James Sexton, of End Discrimination in Inheritance Tax (EDIT) said reports that inheritance tax will not be changed in the Budget will add further pain to couples who have no children.

At issue is the fact that where a couple have children and want to pass the family home on to a son or daughter, inheritance tax kicks in at €400,000.

However, where a childless couple pass the same property to a nephew or niece, inheritance tax kicks in at just €40,000 resulting in most cases of a subsequent sale of the property to meet the Revenue bill, sometimes resulting in property that has been in the family for generations being lost.

The current situation also has serious financial implications for members of the LGBTQ community.

It is even more severe when a property is passed on to friends, cousins, unmarried partners or non-relatives, inheritance tax at a rate of 33 per cent kicks in at just €20,000.

The Government has no plans to address the controversial issue of equalising inheritance tax rules across family thresholds, it was reported yesterday.

James Sexton said yesterday: ‘Budget 2027 is the opportunity to end this injustice. On a €400,000 home, a child will pay no inheritance tax while other loved ones will face a bill of at least €118,000 depending on their relationship to the deceased,’ he said.

‘Equality means equality for every citizen, including those of us who do not have children.’

Inheritance tax earns in the region of €1billion annually for the Exchequer, which is seen as a critical source of revenue for the State.