NPPR Help!

JKHealy

Hey guys, hope I am posting in the right place. So the issue is this. I have an aunt who passed away last year. As her husband died before her and she had no children, she made my mother (her sister), the executor of the will. She had two properties in her name, and willed one to 5-6 of her closest friends. My mother is inheriting from my aunt but not in regard to this house she left to her friends to be sold and the profits split between them.

My mother has recently been told that since the probate has come through on my aunt's estate, that she must pay over 8000 euro in unpaid NPPR. She had been previously assured that any NPPR would be taken from the sale price of the house, but now the lawyer has turned and says that it is the executor that must pay this tax in all circumstances. My question is this: in this situation, should the NPPR be paid by my mother as executor, or should it come out of the value of the house since she has no ownership or inheritance from the property?

adrianw

JKHealy wrote: »

Hey guys, hope I am posting in the right place. So the issue is this. I have an aunt who passed away last year. As her husband died before her and she had no children, she made my mother (her sister), the executor of the will. She had two properties in her name, and willed one to 5-6 of her closest friends. My mother is inheriting from my aunt but not in regard to this house she left to her friends to be sold and the profits split between them.

My mother has recently been told that since the probate has come through on my aunt's estate, that she must pay over 8000 euro in unpaid NPPR. She had been previously assured that any NPPR would be taken from the sale price of the house, but now the lawyer has turned and says that it is the executor that must pay this tax in all circumstances. My question is this: in this situation, should the NPPR be paid by my mother as executor, or should it come out of the value of the house since she has no ownership or inheritance from the property?

The executor is responsible to deduct all taxes before distributing proceeds to beneficiaries under the estate.

Have all monies been paid out of the estate?

Ian_80

JKHealy wrote: »

Hey guys, hope I am posting in the right place. So the issue is this. I have an aunt who passed away last year. As her husband died before her and she had no children, she made my mother (her sister), the executor of the will. She had two properties in her name, and willed one to 5-6 of her closest friends. My mother is inheriting from my aunt but not in regard to this house she left to her friends to be sold and the profits split between them.

My mother has recently been told that since the probate has come through on my aunt's estate, that she must pay over 8000 euro in unpaid NPPR. She had been previously assured that any NPPR would be taken from the sale price of the house, but now the lawyer has turned and says that it is the executor that must pay this tax in all circumstances. My question is this: in this situation, should the NPPR be paid by my mother as executor, or should it come out of the value of the house since she has no ownership or inheritance from the property?

I had a similar situation, I was an executor and the solicitor who was dealing with probate gave an undertaking, to the buyers solicitor, basically saying that he would guarantee that the NPPR would be paid out of the proceeds of the estate before the proceeds were distributed to the beneficiaries.

I believe, once the third party solicitor is okay with this, there shouldn't be an issue.

I had no problem, property was sold, NPPR was then paid and beneficiaries received the remainder.

Lockedout2

I think the question here is should the payment for the NPPR come out of the residue or from the proceeds of sale of the property.

The liability of the NPPR falls on the estate and if the will states that the house should be sold and the proceeds divided among a group of people then that is what should happen, despite the liability for the NPPR being due as a result of the ownership of the house.

Perhaps the beneficiaries would agree to contribute to the payment of the NPPR by a reduction in their distribution?

Mr. Incognito

The money comes out of the Estate. Not out of the Executors pocket.

Speak to your lawyer