Executor Holding back funds to pay CGT on Inheritance.

Laramie

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In an inheritance situation where there is CAT & CGT to be paid is the executor responsible for ensuring that the beneficiaries pay a) CAT and b) CGT.
If the beneficiary does not pay either can the executor be held liable in any way?
 
... If the beneficiary does not pay either can the executor be held liable in any way?
Yes, If taxes are not paid before distribution, the executor is liable. This is one of the reasons the executor needs the beneficiaries' PPSNs.
 
2.4. Capital Acquisitions Tax

Prior to June 2010 legal personal representatives carried a secondary liability in respect of the payment of capital acquisitions tax. This would arise, for example, where a beneficiary did not pay any capital acquisitions tax due and the Revenue Commissioners could look to the executor to discharge it. For this reason it was common for all executors to ensure capital acquisitions tax was paid prior to releasing assets.

Since June 2010 this secondary liability no longer exists for executors unless they have been notified of such obligation by the Revenue Commissioners. Secondary liability does however remain where there are non-resident beneficiaries. Accordingly, extra care is required where any of the beneficiaries are non resident.
 
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