three of us decided to sell the land off probate and not have it vested in our names.
.I have now sold my portion of land
When the proceeds of my sale are lodged into solicitors account there will be 280000.00 in the account. The Nursing home loan has a final figure of 112500.00. This has been known for a long time. Interest on the loan will be 17000.00. I am appealing the interest. Money should arrive into the account next week as sales have been finalised After paying the principal sum of the loan there will be 167500.00 left in the account. I intend to leave 55000.00 in the account to cover the interest if it has to be paid and cover the solicitors fees. Soticitor has already received 7500.00 toward his fees. This occurred after probate when banks lodged monies.Yes, it is prudent of the solicitor to withhold paying the beneficiaries if there are outstanding debts to be paid. However, you as executor would have a good idea of roughly his fees as you both would have agreed this at the start so you as executor can instruct the solicitor to to distribute the assets less outstanding debts. As far as I can follow there are two debts outstanding
Nursing home loan
Solicitor fees
While you may have an estimate of the nursing home loan it may not be accurate so perhaps the solicitor is being prudent.
For example if there are €200K cash, possibly €100K nursing home fee, €12K solicitor fee, I would as the solicitor not be comfortable paying out €70K to beneficiaries, maybe I would suggest €20K. But this is a discussion you as executor can have with the solicitor. Post some rough figures. What other beneficiaries do outside the will/probate business would have no bearing on your and the solicitors discussions.
My accountant was in contact with revenue. They said that 24200.00 had to be paid by middle of Nov 2023 or else interest would accrue. I thought this very unfair but nonetheless borrowed the money and paid the tax as sales on the land were already agreed.What on earth were you doing prepaying Capital Acquisitions Tax on your share of a residue that you had neither received nor had its amount determined, when the liability date for payment of this tax follows the date on which the relevant amount is determined?
Please elaborate.I'm with @T McGibney here; you've got this entire thing backwards.
Four beneficiaries, including myself, received 14 parcels of land. I received two parcels of land which I have now sold. Two of the other beneficiaries are in the process of selling their portions of land. A barristers opinion stated the the nursing load should be paid as the monies arrived into the account.As my proceeds will be the first monies to be lodged the HSe or revenue who are the collectors of the debt will grab this money. The land was very scattered and no two fields were adjacent. That the way it is sometimes in my neck of the woods.One beneficiary has decided not to sell his portion and has invested the land in his name.This is Baffling.
Was it one piece of land left to all three of you, but the Executor sold the land before transferring it to the three of you.
Was it three pieces of land that you all agreed for some reason to individually sell.
Based on the confusion of your post, I suspect that the solicitor has been kept very busy explaining things.
Brendan
Please elaborate.I'm with @T McGibney here; you've got this entire thing backwards.
My inheritance was sold in order to repay the nursing home loan. The land was in my name on the basis of probate. This was the advice I received from my solicitor. Are you saying I was ill advised by my solicitor in that I was not told that I could not access the proceeds until such time as the estate was "settled ", whatever that means.I don't understand how you sold a property and paid tax on it when it was not in your name.
If it sold when still in the possession of the 'estate of the late Jane Johnson'; then none of the proceeds comes to you until all the estate is settled.
If beneficiaries 3 & 4 (or who ever) choose not to sell & instead have the property transferred to their name that's fine, but the liabilities to the estate still have to be settled.
I think you've made a pigs breakfast of this.
Not sure why you had to pay for a barristers opinion.
IANAL
I mean that I was informed that I could sell the land that was willed to me after probate had been granted. How can you sell something that is not yours or not in your name? This I have done and when nursing home load has been paid from the proceeds of that sale all the testator debts will have been paid. I don't see why I should be waiting any longer to access the remaining monies from my sale after all debts have been discharged and I leave funds in the residue to cover solicitors fees. The barristers opinion is on another issue. That issue was related to how money would transfer to HSE to repay the loan. Barristers said it should be repaid as funds reached the solicitors account. In other words the proceeds from my inheritance would reach the account first and I would be obliged to pay the loan from my those proceeds. I have listened to every word my solicitor has said and carefully examined all correspondence from my solicitor. I don't see how you can suggest otherwise. I am simply looking for advise or a second opinion. Going to another solicitor is costly and a waste of time as they all know each other.What do you mean by "the land was in my name on the basis of probate"?
Either the property was transferred into your name or it wasn't.
I suspect you weren't listening to your Solicitor.
Why did you need a barristers opinion?
IANAL
Why did you need to pay a barrister four figures for that? IANAL but it seems self evident that the HSE loan should be repaid before testatees see a cent of cash.In other words the proceeds from my inheritance would reach the account first and I would be obliged to pay the loan from my those proceeds.
The amount I had to pay in CAT was determined by the valuation of the land I was willed. This valuation was carried out by a reputable estate agent after my relative passed away. This was obligatory. My accountant dealt with the payment after much hassle in relation to my inability to pay. No leeway given by revenue. Had to borrow money and pay or else interest would accrue. There you go. God blessWhat on earth were you doing prepaying Capital Acquisitions Tax on your share of a residue that you had neither received nor had its amount determined, when the liability date for payment of this tax follows the date on which the relevant amount is determined?
I did not pay him four figures. The advise was rather cheap in fact. I am wondering myself about the the legal advise I am getting.Why did you need to pay a barrister four figures for that? IANAL but it seems self evident that the HSE loan should be repaid before testatees see a cent of cash.
I wonder about the quality of the advice you’ve received from your solicitor at all.
Ok.The amount I had to pay in CAT was determined by the valuation of the land I was willed. This valuation was carried out by a reputable estate agent after my relative passed away. This was obligatory. My accountant dealt with the payment after much hassle in relation to my inability to pay. No leeway given by revenue. Had to borrow money and pay or else interest would accrue. There you go. God bless
What further CAT bill are you expecting in August if the residue money doesn't come through in the meantime?One other thing. I have already paid the inheritance tax.I had to borrow this money from a relative and need to repay him. That was embarrassing enough. I will suffer more embarrassment if I do not have the resources to pay the capital whatever other tax in August. Does the solicitor have a legal basis for withholding my assets and if so what is this legal basis?
I will have to pay CGT based on the proceeds of my sale which exceed the the original valuation on the land immediately preceding my relatives passing. This Gains Tax has to be filed by mid August and paid by mid September this year. I do not pay tax on the residue as I do not get a cent from the residue. All monies in the residue go to paying outstanding debts, eg, funeral expenses, utility bills, solicitor fees and other legal expenses. Any monies remaining in the residue after these expenses go toward the Nursing home load. Even though I was willed the residue I receive nothing from it. Therefore no tax..Ok.
So you haven't paid the CAT on the residue, as you claimed here.
What further CAT bill are you expecting in August if the residue money doesn't come through in the meantime?
The CAT pay and file date is 31 October annually.
There are 2 payment dates annually for CGT. 15 December and 31 January.I will have to pay CGT... This Gains Tax has to be filed by mid August and paid by mid September this year.
What you really mean is that you expect the residue of the estate, if any, to be very low.All monies in the residue go to paying outstanding debts,
There's a specific order by which debts are paid; I'm sure this list is published somewhere & someone will link to it.Any monies remaining in the residue after these expenses go toward the Nursing home loa[n]
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