Inheritance tax estimation

[legal33]

Hi,

Grant of probate was issued during the summer so inheritance tax is due by October 31st. The estate will not be distributed until December at the earliest. There is no indication of how much my inheritance will be. Am I right in saying that if I pay CAT on 33% of an estimate say €50,000 by October 31st but in December I receive confirmation that it should have been 33% of €60,000, that I pay €3,300 in December plus a penalty of 5% of €3,300? Or is the penalty 5% of €60,000? Or am I better overpaying by €10,000 in October and then claim a Revenue refund when I receive the inheritance?

Thanks,

 

[ClubMan]

Are you factoring in CAT group exemption thresholds into your projections?

CAT group thresholds

This page explains the thresholds, rates and aggregation rules for calculating Capital Acquisitions Tax

www.revenue.ie

 

[legal33]

Yes. Threshold has been previously exceeded. It's 33% on everything.

 

[DeeKie]

I thought inheritance tax only became an issue when the estate is distributed?

 

[legal33]

If the valuation date (in this case, the date of grant of probate) is before August 31st, then the inheritance tax is due by October 31st even if the Estate has not been settled and the beneficiaries have not received any money.

 

[mathepac]

Gift and Inheritance Tax Filing and Payment Guides

The above link is to the Revenue pages