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Foster Child Relief

  1. Overview
  2. Gifts and inheritances taken from a foster parent
  3. Gifts and inheritances taken from certain relatives of a foster parent
  4. Gifts and inheritances taken from other individuals fostered by the same foster parent
  5. How to claim the relief

Gifts and inheritances taken from certain relatives of a foster parent

The Group B threshold is available on gifts and inheritances taken from certain relatives of a foster parent. The relief will apply where either of the following conditions is met:

Condition 1

The beneficiary was placed in the foster care of a person (the foster parent) under:

  • the Child Care (Placement of Children in Foster Care) Regulations 1995
  • or
  • the Child Care (Placement of Children with Relatives) Regulations 1995.

The beneficiary must have taken the gift or inheritance on, or after, 18 December 2023 from:

  • a lineal ancestor of the foster parent
  • a child of the foster parent
  • a child of the foster parent’s civil partner
  • or
  • a brother or sister of the foster parent.
  • Example 1

    Jean is placed in the foster care of a person under the Child Care (Placement of Children in Foster Care) Regulations 1995. 5 years later, Jean receives a €10,000 gift from the foster parent’s mother (a lineal ancestor). Therefore, the Group B threshold can be applied when computing the tax payable on the €10,000 gift.

Condition 2

The beneficiary, while under the age of 18:

  • resided with a person (the foster parent) for at least 5 years in total
  • and
  • was maintained and cared for by the foster parent at the foster parent’s own expense.

The beneficiary must have taken the gift or inheritance on, or after, 18 December 2023 from

  • a lineal ancestor of the foster parent
  • a child of the foster parent
  • a child of the foster parent’s civil partner
  • or
  • a brother or sister of the foster parent.
  • Example 2

    From the age of 10, Mark lived with another person, Tom. Mark was maintained and cared for by Tom, at Tom’s own expense for a continuous period of 6 years. 20 years later, Mark inherits €10,000 from Tom’s sister Anne. Therefore, the Group B threshold can be applied when computing the tax payable by Mark on the €10,000 inheritance from Anne.

Next: Gifts and inheritances taken from other individuals fostered by the same foster parent

Published: 01 March 2024 Print this page

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