Inheritance Tax

Munstermissy

Quick question please if anybody can help.

Is the tax payable on time of death valuation/probate date or when inheritance Is paid to beneficiaries?

A relative passed away over 5 years ago but inheritance due shortly and cannot find a definitive answer on the revenue web site.

Thanks.

The_Bot

From memory, an inheritance is deemed to be taken on the date the recipient is beneficially entitled to the subject matter of the inheritance, which may nor may not be the date of death. You solicitor should be able to advise you.

cmore123

I thought it was like this. The tax is due when you get the inheritance, not when the person died - but - it is levied at the rate appropriate on date of death.

Munstermissy

cmore123 wrote: »

I thought it was like this. The tax is due when you get the inheritance, not when the person died - but - it is levied at the rate appropriate on date of death.

This is what I am trying to decipher. Im trying to see if the CAT thresholds are from 2008 or 2013. Don't want to be giving the revenue too much money!

Ally Dick

I believe you have a year from the date of death to pay an estimated inheritance tax on the sale of a house. If your house estimate is too high, tough. If it's too low, the revenue will come after you for the difference and apply penalties

Tow

The_Bot wrote: »

You solicitor should be able to advise you.

I just be aware that I have see solicitors get this wrong, costing the beneficiaries thousands in interest. Always best to double check your self.

Munstermissy

Tow wrote: »

I just be aware that I have see solicitors get this wrong, costing the beneficiaries thousands in interest. Always best to double check your self.

I have already spoken with my own solicitor and they do not have the answer. They gave me a contact number for revenue so hopefully I will get a more definitive answer.

Mr. Incognito

http://www.revenue.ie/en/tax/cat/guide/valuation-date.html

Mustn't have looked very hard. First hit if you google valuation date for inheritance tax

Munstermissy

Mr. Incognito wrote: »

http://www.revenue.ie/en/tax/cat/guide/valuation-date.html

Mustn't have looked very hard. First hit if you google valuation date for inheritance tax

I looked on the site but maybe I was not clear in my initial post. I was looking to see what year for the thresholds as 2008 I would have 50,000 or so tax free and 2013 it is down to 30,150.

Spoke with revenue today and I have to scan in a copy of will, etc and they will advise tomorrow.

Thanks everybody for your responses.

nompere

Thresholds and rates will almost always determined by reference to the date of death.

The date of payment of tax (and of any interest if the payment is late) is by reference to the valuation date. That is rarely before the date of the grant of probate, and may be some years later. Determining a valuation date can be very technical. Feel free to read S.30 CATCA 2003!