Questions about CAT

[Madrox]

Hi,

Was just wondering if someone would be able to answer a few questions for me about CAT and the CA 24 form.

My mother is executor for my Grandfather's estate, it's a fairly straight forward modest estate with the main benefit being a share in an estate. For the purposes of the CA 24 form she got a valuation done on the property, but as my Grandfather died around the peak of the property boom (2007) the valuation is significantly more than the property would sell for today. I was wondering...

1) Is this valuation/amount received by the beneficiaries final, once it is put on the form? Or is there another point in the process where they can be altered to be more in line for what the property actually sells for?

2) If not, do the current thresholds apply, or is it the thresholds which where in place at the time of death.

3) When does the CAT have to be paid? Are the beneficiaries expected to pay a lump sum once probate has been granted, or is it when the property is sold?

4) As a condition of the separation between my grandparents my grandmother was permitted to reside in the property until her death. She died in 2012, so would the house have to be valued at this date as it would not have been able to be sold before then?

Thanks in advance

 

[Gordon Gekko]

Hi

Your queries probably merit expert advice.

1. It's the value at the "valuation date" that's key - That can be the date of death or (say) the date of the grant of probate depending on certain factors.

2. It's the thresholds at the valuation date that apply.

3. Now, the rule is for the year ending 31 August, the following October 31st. It seems unclear what's happening here - Is probate ongoing eight years after his death?!

4. No, but its value for tax purposes would have been reduced based on a formula linked to her age (there are tables setting out the relevant rates).

I'd say get professional advice.

 

[Madrox]

Thanks for the response Gordon Gekko.

I plan on sending an email to revenue, or having my mam talk to a solicitor to clarify but was just wondering if anyone on here had any ideas first.

Just on your points;

1) Who decides what the 'valuation date' is, and what factors would determine it?

2) That doesn't seem too bad. Using the 2007 valuation and current thresholds would mean roughly 10,00 euro in tax regardless of what the property sold for, using the 2007 threshold reduces it to about 1,500-2,000.

3) Will has been there since the death but hasn't been entered into probate due to various reasons. The forms have been completed in the past few days and will be submitted once I have an idea of how tax situation works.

4) Will have a look for them.

Thanks again.

 

[Brendan Burgess]

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[Madrox]

Apologies,

There were a few different questions in my post so wasn't sure which title to put on the thread.

Have tried to edit it using the link you provided but it is saying I do not have permission to perform this action.