Probate Question

toomefc

Hi All

My husband’s Dad passed away on 8th Oct 2015. We had another family bereavement & had a baby at the start of this year so Probate just went to the back of the queue.. We’re just starting to look at it now

Just for confirmation I can see that the threshold for CAT has changed significantly since his death.

Pre 13 Oct 15 - €225k
Post 13 Oct 15 - €280K
Post 12 Oct 16 - €310K

His estate is quite straight forward. Total value is €320k. Just want to confirm that our threshold will be the €225K ie the date of death & not €310k ie the date we start probate

Any help is hugely appreciated

coylemj

The rate and tax-free threshold are determined by the date of death....

The date of a gift is normally the date it is received. The date of an inheritance is usually the date of death of the person leaving the inheritance. These dates determine the Capital Acquisitions Tax (CAT) rates and the group threshold that apply.

http://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/valuation-date-and-return-deadlines.aspx

The valuation date is defined as follows .....

The valuation date for an inheritance is the earliest of these dates:

• the date the executor or administrator can receive the inheritance to give it to you
• the date the executor or administrator actually receives the inheritance to give it to you
• the date the executor or administrator gives the inheritance to you.

http://www.revenue.ie/en/gains-gifts-and-inheritance/valuation-date-and-the-value-of-certain-benefits/what-is-the-valuation-date.aspx

Victor

toomefc wrote: »

Just want to confirm that our threshold will be the €225K

Note that this amount is for each person inheriting.

coylemj

Victor wrote: »

Note that this amount is for each person inheriting.

+1 and it falls into category 'A' - son or daughter inheriting from a parent so if the OP's husband's mother predeceased her husband (OP's father) then any money he inherited from her will count towards calculating his tax-free entitlement.

Meaning that if his mum died a few years ago and left him 10K, that will reduce the amount he can inherit tax-free from his father by 10K.

http://www.revenue.ie/en/gains-gifts-and-inheritance/cat-thresholds-rates-and-aggregation-rules/cat-aggregation-rules.aspx