When to pay inheritance tax

[hmmmmmmmmmm]

At what point are you expected to pay the tax? Is it a year following the date of death, or probate applied for or date probate granted or sometime else?

Also, there's some speculation that the tax threshold for inheritance tax may increase in the forthcoming budget. Just wondering, given that our relative has already died this summer, I wonder is there any chance that the new threshold could apply if we wait to pay the tax after the hoped for change?

 

[cremeegg]

No. The threshold at the date of death applies.

 

[john luc]

If you are to be a beneficiary of a will and it's going to a percentage of the balance after all other considerations are completed then you can only pay the rat if any due when the probate is complete. If it carries on longer than the time period you need to inform revenue that you are unable to make a return as the amount is not settled.

 

[Ray Duffin]

Firstly, your solicitor will tell you the precise position on this. It's not straightforward and it is important. The date tax is due is determined by the 'date of probate'. You can exercise some influence on this date. It can be set as the date of death, but you may find it preferable to have it set as the date on which probate is granted.Inheritance tax will be due in the October following the date of probate. So, if you can submit your request for Probate at the very end of Sept. and hope for grant of probate in October, you'll have the whole year before you have to pay the tax. However, everyone else is also doing this , so the Probate office gets inundated at this time and this can lead to a delay in grant of probate. This may be ok for you, it may not ( if you need some money to pay bills). You need your solicitor to be pretty proactive with the Probate office for you.
In particular, be wary of finding yourself with a date of probate is the summer, creating a tax liability in that October, by which time, you may not have completed the liquidation and distibution of the assets. It happens.

 

[john luc]

I am involved in something like ATM. as the assets are not liquidated yet all beneficiary's were asked to send a registered letter to revenue explaining that they are not able to make a return as they do not know the extent of the benefit.