Penalties for deferring CAT for 20 years?

Discussion in 'Wills, inheritances and gifts' started by On a Plain, 4 Nov 2018.

  1. On a Plain

    On a Plain Registered User

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    A property was bequeth to me by grandmother in a will about 20 years ago. Probate was granted but nothing else was done. My my mother had a right of residence there she lived there until her death this year. The property remains in my grandmothers name. If property is transferred to my name now am I liable for CAT from what date, 1998 or 2018?
     
  2. rob oyle

    rob oyle Frequent Poster

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    1998. Otherwise no one would transfer any asset into their own name until they wanted to liquidate it.
     
  3. Twoflutes

    Twoflutes Registered User

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    Would that not be to the OP's advanatge though as , presumably the value of the property in 1998 was much less than today and the tax bill is much lower ?
     
  4. rob oyle

    rob oyle Frequent Poster

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    There's a plethora of taxes to deal with, including inheritance tax at the rate/allowances available in 1998 (and presumably not paid, if the name on the property hasn't been changed), NPPR / LPT over recent years (depending on what's been paid) and then CGT now, against the value of the property in 1998, if the OP wishes to sell.
     
  5. On a Plain

    On a Plain Registered User

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    Wow, CAT and CGT , what a nightmare. Selling is really the only option I have with it
    Can I just also ask, as my mother had a right of residence there for 20 years, does that in any way offset the taxable amount ?
     
  6. Ravima

    Ravima Frequent Poster

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    talk to a tax advisor
     
  7. Bronte

    Bronte Frequent Poster

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    I don't know the answer to your question but me and my siblings received an inheritance from a grandparent due to our parent predeceasing us. The property had been left to my parent and siblings with right of residence of one sibling. On the death of that sibling, the inheritence came to the siblings (and via my parent to us grandchildren). Nobody mentioned anything about tax. A cousin via a solicitor distributed the estate and we all had to supply prsi numbers.

    When you consult a professional do come back and tell us what you find out as regard taxes.
     
  8. dublin67

    dublin67 Frequent Poster

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    I'd talk to a tax advisor here or perhaps a solicitor with tax expertise. It might be the case that the ceasing of a right of residence (i.e. your mother's death) was the termination of a life interest. This may mean that the date of the inheritance was your mother's death and not your grand mother's death. If this is the case then the tax point for CAT may be 2018 and not 1998. This could be a good result.

    Please note the conditional language as I'm not a CAT specialist but it may be worth you while talking to someone who does this on daily basis.