Inheritance Tax - me or executor?

darraghw

ok so basically a house was left to me, my sister and cousin by our uncle. In the will it stated that the house be sold and then divided between the 3 of us.

My aunt is the executor of the will and decided that instead of using a solicitor she will do everything herself.

The house has been sold a little over 6 months but none of us have received any money yet. The money is just sitting in an account as far as i am aware.

When questioned about it the executor said there was a problem with tax and now has said that it has gone to revenue.

I'm just wondering whether it is the duty of the executor to sort out inheritance tax or would that not be my duty? Considering she wouldn't be aware of any other inheritance i may have gotten.

Any replys would be greatly appreciated.

NUTLEY BOY

Might be better asked in the BIZ TAXATION thread.

Legal advice not allowed here. However, in general, the individual is usually responsible for any personal tax liabilities that they may have and has the responsibility to self declare.

Talk to Revenue and or your own solicitor. Do not leave this to lie as some liabilities if they exist carry higher costs if you delay settling them.

Jo King

An executor can have a secondary liability to tax on an estate. This is on the basis that if a person holds money on which taxes are due, from themselves or another, the holder of the money can be made liable if the taxpayer does not pay. It is common and very sensible for executors to get clearance from the Revenue before releasing money.

Wantobe

Yes the executor does have a secondary liability so normally they would not pay out until clearance is obtained. However it is the beneficiaries responsibility to obtain that clearance, which they can abdicate to the executor/rix if they wish. In this case it is difficult to see how the executrix could have made a return on behalf of the beneficiary without their permission, information on prior benefits and agreement and signature to the actual tax return. The op should take legal and tax advice straight away.

mamapeist

I dont know how she could have sold the house without a solicitor and without either the tax being paid or a solicitor undertaking to pay it out of the proceeds. Sounds very strange. Definitely a case for solicitors advice

grumpytrousers

Wantobe wrote: »

Yes the executor does have a secondary liability so normally they would not pay out until clearance is obtained. However it is the beneficiaries responsibility to obtain that clearance, which they can abdicate to the executor/rix if they wish. In this case it is difficult to see how the executrix could have made a return on behalf of the beneficiary without their permission, information on prior benefits and agreement and signature to the actual tax return. The op should take legal and tax advice straight away.

I agree that it's odd that the executor managed to do a return without getting the informatino re prior benefits from the OP; however, I don't find it odd that no money is paid out until the tax situation has been resolved completely. IIRC, Capital Acquisitions Tax adheres to a property rather than a person, so if the executor is selling the property, then the purchaser might not actually consent to the purchase monies being released until it's sorted out?

there could be other tax issues. For instance, it's not unheard of that *after* a Grant of Probate has come out that the Revenue decide to do an audit of the affairs of the deceased which is an awful thing to have happen.

I'd just say to the OP, there's more than one kind of tax issue, but as a beneficiary, you're entitled to ask the executor exactly what is wrong. She's taken an oath to honestly administer the estate and should tell you the story.