Land Folios and Statement of Affairs

[Tinaop]

The Statement of Affairs submitted to Revenue had one portfolio number listed for both residential and agricultural land. However, the one folio number provided was only for the residence and its garden. There are several other folio numbers related to the deceased ownership. I would have expected Revenue to do a cross check but they say they rely on the information submitted by the Executor. It's about 15 hectares on other portolios and Revenue have granted tax clearance. Who is responsible for checking this Revenue or the Executor. Could it affect residuary estate if the beneficiary who inherited and or the executor did not report all the folios

 

[HappyLuck]

Hi,
Just a couple of questions.
Did the SA2 have the correct values on the form in terms of assets?
Have you already obtained a grant of probate?
If the values are correct, than I don't see a problem for the probate office or Revenue Commissioners. If the values are not correct then the Executor should submit an amended SA2. Regarding who is to check, unfortunately it is always the taxpayer & if you are audited you need to prove your figures to Revenue.
If the values are incorrect then it will affect the residuary but you just need to update the SA 2.

 

[Tinaop]

@HappyLuck Hi, the beneficiary of the residential and agricultural land did a self valuation and gave the figure to the Executor. The Executor then submitted only one folio number and I figured that the figure is low a 5 bed house with 15 hectares at 170K so Revenue informed me only one folio for the house and the others are not listed. The Executor refuses to update SA2 and this means i cannot get my residuary as I see these errors. Nobody will provide proof of the value and what folio or folios its for but the SA is clearly listing one folio with the above amount

 

[MOB]

the beneficiary of the residential and agricultural land did a self valuation and gave the figure to the Executor.

So, this self-valued property is not part of the residue then, correct?

The Executor refuses to update SA2 and this means i cannot get my residuary as I see these errors.

Why does this mean you cannot get your residuary share? The whole thing sounds shonky, but if land that has nothing to do with your inheritance has been undervalued, how does that affect you financially? I don't see the full picture. If you could better explain the relevance, you might be able to get some useful help.

Could it affect residuary estate if the beneficiary who inherited and or the executor did not report all the folios

If those folios are not part of the residuary estate, then no, these omissions should not affect the residue.

On second thoughts - - if the probate fees are being charged on a percentage of the total estate value and that total value has been underdeclared, this may have a positive effect on your situation, because costs usually come from the residue. Hard to say without the full picture.

 

[Tinaop]

@MOB Hi, correct it is not part of the residue. Shonky indeed but as the Executor has not submitted all the folios and tax clearance and probate has been granted on this basis, these folios are not delcared on the SA2 to revenue.

How this might affect me as a residuary financially is if both the beneficiary and executor are working together to avoid paying tax on these unreported folios and the Executor conveniently uncovers the missed folios and already have paid my residuary share the estate might claim fees and charges to correct from my residuary as the Executor is a solicitor.

The solicitor could affectively drain the residue with their own fees to correct their own error and there could even be penalties to revenue for under declaration. Yes, the fees are all charged as a percentage of the total estate value and the Executor has the indemnity for me to give the money back if anything crops up...but I am aware the folios are missing prior to signing anything. So if the fees are single digits % this would be peanuts compared to a 33% tax liability to the beneficiary if they are over the threshold to pay inheritance tax on the undeclared folios.

The property and land all remains without formal beneficiary handover and is still registered in the deceased name and clearly no urgency for the beneficiary to get it signed over to themselves.

I could be taking 100% of the financial risk so that the folio beneficiary avoids 33% tax bill and the solicitor could close off happily with me in an indemnity trap.

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