Tax Clearance Cert from beneficiaries

[Thirsty]

Almost in the final stages of DIY Probate... appointment with Probate office next week (ooh the excitement! )

I'm getting conflicting information in regards to beneficiaries tax clearance certs.

One person has it that I won't get my Grant of Probate without a tax clearance cert from each of the beneficiaries. (I have letter of clearance in regards to the deceased, so that's fine.)

I don't understand how a beneficiary could get tax clearance prior to grant of probate, since I can't be certain how much they might get until I complete out all the final accounts (can make a good guess, but that's not the same thing).

Another person says I have to get Tax clearance certs from beneficiaries before distributing assets/money; ok I can kind of see that one but then would that mean they have to pay Inheritance tax before they even see the dosh? Seems a bit much to expect?

Solicitor (who drew up will & signed off CA24, but is not doing probate work, if you see what I mean) says it's up to beneficiaries to deal with their inheritance tax and executor not liable. Which sounds fine in theory but then I'm seeing online Soltrs websites saying that if tax not paid Revenue will look to the Executor? Also one of the beneficiaries lives abroad, so that confounds things a wee bit.

Can anyone shed some light here for me?

 

[MOB]

see para 2.3 of this document [broken link removed]
There is no "tax clearance cert" mechanism for CAT; it is a simple pay-and-file tax.
However, you are liable if the non-resident beneficiary is getting more than €20k.

 

[Thirsty]

Thanks MOB.

After what seemed like endless phone calls, I finally got to talk to someone in Revenue who fully understood what I was asking.

So for the benefit of those in a similar situation here's the word from the horse's mouth...

a. if the beneficiary resides in Ireland, Pay and file is their responsibility. Nothing for Executor to worry about, no tax clearance or anything else. Once you have probate you can safely hand over the dosh due to them. All those Soltrs websites which say other wise (and I found quite a few!) are out of date.

b. if the beneficiary resides overseas, you apply to Revenue for a Section 48.10 clearance to release property. In a nut shell, if you don't have this clearance, it means overseas beneficiary hasn't paid their inheritance tax so you don't release property.**

There is an option for Executors in regards to overseas beneficiaries to hold back cash to the equivalent of the inheritance tax payable, if there is such cash due to the beneficiary. This isn't an option in my case.

**What happens if we reach the payment deadline of 31st Oct and tax still not paid is another days work....