Letter re probate from solicitor

FloatingVoter

Received this from my solicitor today. It regards my aunt who is a beneficiary in a will (her sisters). She is now a Canadian citizen (ie. dual nationality). Hasn't worked or resided in Ireland since the early 1970s. The money will be paid into her Irish a/c.

I refer to the above matter and I wonder if you could confirm whether or not Ms. _____ has a PPS number already. If she does not or she is unaware as to whether or not she does, you might please confirm how long she lived in Ireland, where she lived and if she was in employment whilst she was resident in Ireland

Is this normal ? What should I advise her ?

coylemj

FloatingVoter wrote: »

Is this normal ?

Yes, the revenue want to know the PPS numbers of the people who got bequests and their relationship to the deceased to see if there's a liability to tax. The current tax-free threshold for inheriting from a sibling is €30,150 http://www.revenue.ie/en/tax/cat/thresholds.html

FloatingVoter wrote: »

What should I advise her ?

Provide truthful answers to the questions, what else are you expecting?

FloatingVoter

coylemj wrote: »

Yes, the revenue want to know the PPS numbers of the people who got bequests and their relationship to the deceased to see if there's a liability to tax. The current tax-free threshold for inheriting from a sibling is €30,150 http://www.revenue.ie/en/tax/cat/thresholds.html



Provide truthful answers to the questions, what else are you expecting?

Oh, point taken. Yup, we capped it at the threshold before the death so its just the 30,000 that she's getting. Seems a formality then. Looks like an end in sight to the bloody probate at last.
Thanks.

Joe1919

I have a similar situation in my family and this is causing a long delay with probate, as an application has to be made to Client Identity Services, Department of Social Protection, for PPS number before revenue form can be completed, and there is difficulty contacting and getting co-operation from beneficiary. ( I suspect that she may be worried about her status/visa/work permit abroad. She wants her inheritance from her uncle (approx 17,000) but is prepared to postpone for a while. )

Is there any way around this?

NUTLEY BOY

FloatingVoter wrote: »

Oh, point taken. Yup, we capped it at the threshold before the death so its just the 30,000 that she's getting. Seems a formality then. Looks like an end in sight to the bloody probate at last.
Thanks.

Careful now !!

Happily, there seems to be no CAT liabilility for your aunt on the basis of this inheritance only.

However, if your aunt has received previous inheritance(s) within this catergory she might have a liability as the threshold is an aggregate.

Also, if your inheritance is within a certain percentage of the threshold you have to make a return anyway.

P.S. Once probate is granted Revenue will subsequently know who received what and will probably issue a form (IT38)anyway to your aunt to complete a return. In short, your aunt probably needs to make a return to Revenue even if it is only to receive a "nil" assessment.

FloatingVoter

I was in touch with her last night. Turns out she gets a tiny pension (€10 a month) relating to nursing here in the mid 60s. So that probably means her old RSI number is still filed away somewhere.
I suppose this codology is easier better than chasing certain Anglo bank people..

amen

Happily, there seems to be no CAT liabilility for your aunt on the basis of this inheritance only.

but what about any Tax liability as she is now living in Canada.

coylemj

amen wrote: »

but what about any Tax liability as she is now living in Canada.

Go on so, quote us the relevant Canadian tax rules.

holly_johnson

amen wrote: »

but what about any Tax liability as she is now living in Canada.

Double taxation agreements should take care of that. If it's exempt here, it should be exempt there as technically the "income" has been "earned" here.

Marcusm

holly_johnson wrote: »

Double taxation agreements should take care of that. If it's exempt here, it should be exempt there as technically the "income" has been "earned" here.

I hope you're not a tax adviser; a gift or inheritance of property (whether personalty or real property) is not "income" for any double taxation agreement relating to income and gains. There are very few (2 - US and UK) Irish DTAs covering inheritance tax.

The Canadian position would need to be checked by the beneficiary.

holly_johnson

Marcusm wrote: »

I hope you're not a tax adviser; a gift or inheritance of property (whether personalty or real property) is not "income" for any double taxation agreement relating to income and gains. There are very few (2 - US and UK) Irish DTAs covering inheritance tax.

The Canadian position would need to be checked by the beneficiary.

Nope I'm not a tax advisor, nor do I play one on TV. My apologies if I misinformed. I was under the impression that cat gains were taxable in the jurisdiction in which the gain arises, and if exempt there, the exemption would carry across the dta. Again, apologies.

amen

coylemj wrote: »

Go on so, quote us the relevant Canadian tax rules.

I don't know them. I was only asking ?