Inheritance taken by Parent from Child
Legislation - Section 79, Capital Acquisitions Tax Consolidation Act 2003.
If a parent takes an absolute inheritance from a child, that parent has a Group A threshold.
However, if in the previous five years that child had received a non-exempt gift (in excess of €1,270/€3,000) or inheritance from either parent, the inheritance taken by the parent will be exempt if it is taken on the death of that child.
Example
Philip receives a gift of €10,000 from his mother in 1999. Philip dies in 2002 and leaves his entire estate i.e. €1,000,000 to his father. The inheritance taken by the father is exempt.