At what stage does one officially inherit something?

B

Booh

Registered User
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I ask because I was left some cash and an item of value.
The disponer died in 2005
The will was passed through probate in 2006
I received the cash in late 2006
However I have still not received the remaining item as the executor is still trying to agree it's value. There was a nominal value for such an item but this is unfailry high as the quality of the item left to me is not very good.

Have I officially inherited this other item? If so how can I possibly account for it in my tax returns if I don't know how much it's worth?

Confused?
 
So i officially inhertied it back in 2006?

I don't know how to declare it on my tax returns as I don't know how much it is worth.

If it was given full value, it would come close to my CAT threshold for the that category, but if it was given a fairer value to reflect it's condition it would fall below the CAT threshold. Either way i do not owe tax yet on it per se, but i understand that the CAT bands are aggregate so I need to know how much i have inherited.

I have not been given the item or it's value by the executor yet. I wrote and asked for it a couple of months ago and was told he was still trying to agree it's value.

Any suggestions?
 
What do you mean by "full" and "fair" value? You may need professional advice.
 
Sorry,

to try and clarify.

Full value is what Revenue consider the value of this item to be worth in it's own right.

Fair value takes account of certain conditions of use as stipulated by the disponer.
Complex in detail, but very simple in big picture, it's not worth 100% of it's market value to me right now.
 
I was going to say I think interest is due from the date of Probate + 6 months, but Page 4, Question 11 of IT38 states interest is due 4 months from valuation date. I have not read through the whole document.

I have experienced having to wait years before solicitors (large well know company) got around to finalising some inheritance due to me. Little did I know that the time interest was building compounded monthly. They also calculated the interest from the date of death. On 'independent financial advice...' (Cubman's favorite phrase :)) and Ringing Revenue (they can be very helpful!) I bypassed the solicitors and sent a cheque directly into Revenue without the interest, stating that I thought I did not have to pay it due to delays by the solicitors, useless executors, delays in Probate, etc. They wrote back looking for evidence to back it up. Sent them photo copies of my pile of paperwork, plus some more I got from he solicitors and never heard another word.

In your case I would take matters into your own hands, get the object valued by your self. Then ring the Gift/Inheritance Tax section of Revenue (it may take a few tries to get someone good) tell then your story and ask how they handle inheritance tax when another person has beneficial use. They probability have a written formula/guidelines, so look for a copy of it. Fill out the IT38 Form (attached above) and make the return (if any).

Looking at IT39 ([broken link removed] ) page 11, Part 3, Section 1 “In the case of an inheritance, a person is deemed to take an inheritance where he/she becomes beneficially entitled in possession” That may mean that no inheritance actually takes place until the other person, with “beneficial use”, hands over to you. Again ask Revenue, they give free advice, but just be carefull and look for paperwork to back it up, because it is sometimes wrong.


Towger
 
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