Revenue Delay after Probate Granted?

[Kerrsland]

My Father's brother's will was recently granted probate.

However, upon contacting the solicitor to arrange the dispersal of the Estate, my father has informed that an unavoidable delay, caused by the Revenue Commissioners, will hold-up the Will's distribution into October, at the earliest.

The Revenue Department in question is apparently "understaffed", with rise to the inevitable delays...

He was extremely surprised to hear this, given probate is already in place.

Does any poster have experience/insight of this?

Perhaps there is something the solicitor isn't telling us, something untoward?

Alternatively, is this just a standard practice, in light of recent budgetary cut-backs in the Revenue?

 

[itsallwrong]

From my experience (I have done 4 probates applications), Probate cannot be granted unless the Revenue has stamped the Capital Ac.Tax. form.

Each time I had to complete the form, I went in, the people in the Revenue looked over it and stamped it there and then.
Only when all criteria are satisfied will the Probate Office issue a Grant of Probate.

Q -'He was extremely surprised to hear this, given probate is already in place'
In that case the Grant of Probate is done and issued and in somebodys hands.
Q -'is this just a standard practice'
It cannot be standard - Grant of Probate has been issued.

I would ring the Revenue directly or call into their office.
Top of O'Connell St. was the last time I was there. Might have moved their office.
Tell the solicitor you are going in to chase them along.

 

[Vanilla]

Completely normal, it's not CAT at this stage, it's Income tax clearance. I've had estates delayed for several months after probate is granted waiting for income tax clearance ( without it the executor cannot distribute the estate). Sometimes if the testator hadnt filed income tax returns for the years prior to their death, the returns now have to be filed, sometimes its pensioners and the revenue want to double check their income threshold, they will also double check on any disposals during the testators lifetime to ensure there isn't an outstanding CGT payment etc

Nothing untoward here, it may well be that people who do personal applications are not aware of the necessity of obtaining income tax clearance, hence other poster.

And BTW, itsallwrong, revenue don't stamp a CAT form before probate is granted. Once probate is granted each beneficiary now has until the following October to file their CAT return where relevant. IF overseas the executor is responsible to ensure it is done before distribution.

 

[itsallwrong]

Vanilla - Once probate is granted each beneficiary now has until the following October to file their CAT return.

Is this a recent thing they started doing?
It is a while since I was involved with them.

 

[Vanilla]

It used to be that each beneficiary had about 3 months to file a CAT return after the valuation date.

What you had stamped by the Revenue to lead to a grant of probate was a 'Certificate for the High Court'. This was changed a few years ago, and now you no longer apply to the Revenue prior to the grant.

However the income tax clearance has been necessary for many years. Again it's not something that a personal applicant would necessarily be aware of or apply for.

 

[putsch]

Income tax clearance took me many months to get & plenty of heartache in reconstituting old tax returns - I knew the siblings were wondering was I sitting on my hands.

I don't know about staff shortages but I do know that with so many elderly not having declared either social welfare or private pensions there may be tax arrears to be paid and this is the final chance for revenue to get their share paid so they will be checking minutely.

 

[mandelbrot]

Income tax clearance took me many months to get & plenty of heartache in reconstituting old tax returns - I knew the siblings were wondering was I sitting on my hands.

I don't know about staff shortages but I do know that with so many elderly not having declared either social welfare or private pensions there may be tax arrears to be paid and this is the final chance for revenue to get their share paid so they will be checking minutely.

Believe about the staff shortages... Revenue has shed a thousand people, or 15% of staff since 2008. As well as having more taxpayer contacts, and more taxes (ie LPT) to deal with.

 

[Thirsty]

who do you need income tax clearance for?

Hi Vanilla, I might add this item to the DIY probate thread, if you don't mind but I just want to confirm first who you need the tax clearance for?

Do you need it for each of the beneficiaries?
If so what about a beneficiary who is resident abroad?

Do you need it for the deceased?

Can you apply to revenue in advance of the probate application to get a tax clearance letter/certificate?

many thanks
Thirsty