Probate and Tax ?

[Babsy]

I’m executioner for my uncles will. The estate consists of his house, savings and life insurance policies. Is the only tax issue to consider Capital Acquisitions Tax if the beneficiaries exceed the thresholds e.g. >43,400 for Group B - nieces and nephews?.

He was getting income from his employer’s pension and from another illness policy, would this be taxed at source or could there be possibly tax liabilities due here?

Many thanks,
Babsy

 

[Ants09]

As executioner of your uncles estate the only tax obligations you have is CGT on the disposal of your uncles assets and Income tax on your uncles income.

your nieces and nephews have to deal with cat themselfs and you dont have to worry about them or pay cat

just a point of interest to you also ...

Under Section1060 TCA1997/2009Proceedingsagainst a executor or administrator.On the death of a taxpayer, can enforcement proceedings to collect a penalty be continued against the deceased's personal representatives?(2) Proceedings may not be commenced by virtue of subsection (1) against the executor or administrator of a person at a time when by virtue of subsection (2) of section 1048 that executor or administrator is not assessable and chargeable under that section in respect of income tax on profits or gains which arose or accrued to the person before his or her death.

 

[mf1]

I’m executioner for my uncles will. The estate consists of his house, savings and life insurance policies. Is the only tax issue to consider Capital Acquisitions Tax if the beneficiaries exceed the thresholds e.g. >43,400 for Group B - nieces and nephews?.

He was getting income from his employer’s pension and from another illness policy, would this be taxed at source or could there be possibly tax liabilities due here?

Many thanks,
Babsy

Eh, you're the executor - not the executioner!

You should always consider the Deceased's own tax position as there may well be outstanding liabilities. It is worth while contacting the Deceased's tax inspector and confirming that there are no outstanding liabilities for income tax or CGT.

The estate may have an income tax liability if e.g. rental income accrues during the course of the administration of the estate. Finally, CGT may be an issue if there is an increase in market value of the property between the date of death and the date of sale.

mf

 

[mf1]

My understanding is that the Per Rep has secondary liability for CAT and certainly I would never advise an executor to distribute an estate unless the beneficiaries had discharged their CAT liabilities

See from Revenue:



"You should be aware that, in addition, the personal representative has secondary liability for the payment of any Inheritance Tax due by the beneficiaries in respect of the benefits they take under the will or intestacy. This means that if a beneficiary should fail to pay, the personal representative will have to do so."


mf

 

[Vanilla]

You should ensure clearance from income tax and the dept social welfare too before any payment from the estate.

 

[Babsy]

Thanks Guys for your replies.

mf1 you say "contacting the Deceased's tax inspector " is this just matter for phoning the local tax office and giving them his pps number or is it more complex then this?