Hi adox
Welcome to the club.
https://www.askaboutmoney.com/threads/how-does-executor-file-cgt-return-for-the-estate.204856/
Brendan
At the risk of repeating myself, pay for specialist advice. It doesn't need to cost much, but you will get the correct advice.
Revenue are not an advisory service and although I find them very helpful, they are not there to guide you. CGT and CAT and SD are all self-assessment taxes.
Your solicitor has said they don't deal with CGT ( some solicitors will not, most TEPs will) so go to an accountant. And please do this before you pay out the beneficiaries because you are responsible as executor for the full amount,not just your share. So best to pay the CGT and any fees and then divide the balance.
Thanks. The beneficiaries are already being paid. All fees have been taken from the pot before the funds are distributed except the CGT. I realize I am solely responsible for paying this as executor but there are only two other beneficiaries who are both my sisters who I have no problem in trusting to pay me back their share.
I would have thought that it would be quite expensive to employ the services of an account for this?
Also I realize that revenue are not an advisory service but the money is owed to them and needs to be paid to them with the correct paperwork from them so I don’t think it’s u reasonable to ask them how to proceed with correctly seeing as they don’t seem to have any clear indication of how to do so.
The CGT is a liability of the estate, payable before the estate is distributed. It's just plain wrong to distribute the estate to the beneficiaries without having paid that tax liability first. If nothing else, you've overstated the value of everyone's inheritance, which could affect their future tax positions.
and that they granted that clearance.
in writing?
That clearance you mention that the solicitor received is for CAT, not CGT. Always necessary for a non-resident beneficiary.
You asked the solicitor to retain the CGT, but you know that he hasnt because you have seen the figures which I assume you approved before distribution. So just get on with it and retain the accountant as soon as possible. An accountant will be very reasonable and you will know it is done correctly. I assume you received IT clearance and that it is not necessary to file IT returns also.
That clearance you mention that the solicitor received is for CAT, not CGT. Always necessary for a non-resident beneficiary.
I would have thought that it would be quite expensive to employ the services of an accountant for this?
This is most strange as it's my understanding that you cannot distribute an estate until you have 'filed and paid' the CAT for a non-resident beneficiary. For example, the Law Society's guideline on the Administration of Estates https://www.lawsociety.ie/globalassets/documents/committees/probate/adminestatebrochure.pdf states: “In the event that there are beneficiaries who are not resident in Ireland, Irish resident personal representatives are responsible for the payment and filing requirements of the non resident beneficiaries and should retain enough funds from the benefit of the non resident beneficiary to pay the inheritance tax due.” This is a complex issue and Revenue has an eBrief No. 012/18 on dealing with non-resident beneficiaries https://www.revenue.ie/en/tax-professionals/ebrief/2018/no-0122018.aspx to which you should refer.Yes apparently so, although I haven’t seen it in person(I have it in writing from my solicitor) The reason my solicitor gave was that one of the beneficiaries lives outside the country(not sure how that is relevant).
This is most strange as it's my understanding that you cannot distribute an estate until you have 'filed and paid' the CAT for a non-resident beneficiary. For example, the Law Society's guideline on the Administration of Estates https://www.lawsociety.ie/globalassets/documents/committees/probate/adminestatebrochure.pdf states: “In the event that there are beneficiaries who are not resident in Ireland, Irish resident personal representatives are responsible for the payment and filing requirements of the non resident beneficiaries and should retain enough funds from the benefit of the non resident beneficiary to pay the inheritance tax due.” This is a complex issue and Revenue has an eBrief No. 012/18 on dealing with non-resident beneficiaries https://www.revenue.ie/en/tax-professionals/ebrief/2018/no-0122018.aspx to which you should refer.
Even where there is no CAT due, you still need revenue clearance for a non- resident beneficiary. This is because strictly speaking that beneficiary might owe other taxes in Ireland, such as IT or VAT.
As the executor you have a secondary liability for taxes in the estate.
Sorry Vanilla, what do you mean by secondary liabilities for taxes?
If they don't pay, you become legally obliged to pay it for them.
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