joint account with a deceased person is part of the estate? Solicitor´s fees

[LoracB]

Hello, I hope you can help me out here:

I had three joint accounts with my partner who sadly died 5 years ago. I haven't sorted that out yet. Now his sister's solicitor is dealing with my partner's state. There is no will. Her solicitor told me that I am the sole owner of the three joints accounts, and said that I have to pay taxes (IT8 form) because there is over 50.000 euros. The thing is the solicitor is dealing with other parts of the estate to which I won´t be entitled. He offered me help with the change of name of the accounts and with the payment of the taxes, I asked him how much would cost me and the solicitor said that all the solicitor´s fees will be paid from the estate

I don't live in Ireland any more. Could I pay the tax without a solicitor? the bigger amount of the estate the bigger the solicitor´s fees are?

Thanks.

 

[jpd]

Why not accept the solicitor's offer ?

It won't cost you anything

Yes, you could probably do it yourself but it will require documentation such as death certificate, proof of probate, identification etc

Assuming you weren't married or in a civil partnership, then the tax free threshold is € 16,250. Any amount above that is taxable at 33%

For example, if the bank balances at the date of death were 50,000 then tax of (50,000 - 16,250) x 33% = 11,138

This should have been paid in the year following the death, so there may be late payment fines and interest due

Again, let the solicitor sort it out

 

[Farma1]

Agree with above on letting solicitor sort it out but the tax situation isn't as black and white - what you are taxed on depends on how much of the account you contributed to - if it was all your partners money being paid in, then its as above, if you were both paying in you have grounds to only count a portion of it as inheritance.

Have you left these accounts dormant over the last 5 years or have you been using them? And did you notify the bank of his death at the time? It isn't often we see people ignore 50k in cash in their joint names for 5 years........

 

[Bronte]

Why is there an assumption that the 50K in the joint accounts came solely from the deceased partner.

 

[LoracB]

Agree with above on letting solicitor sort it out but the tax situation isn't as black and white - what you are taxed on depends on how much of the account you contributed to - if it was all your partners money being paid in, then its as above, if you were both paying in you have grounds to only count a portion of it as inheritance.

Have you left these accounts dormant over the last 5 years or have you been using them? And did you notify the bank of his death at the time? It isn't often we see people ignore 50k in cash in their joint names for 5 years........

Hello, we both contributed to the accounts.
I had the accounts dormant over the last 5 years, I haven´t touched them. I notified to the bank (AIB) the death of my partner three years ago and sent them the death certificate. I haven´t touched the money: my partner was relatively young when he died, he died unexpectedly from a diabetes condition, we have been together since we were 18 years old, so the first two years I did not think of the money, I was on a psychological treatment, then I moved out from Ireland and I didn´t know to how much I was entitled to (we were not married, or in a civil partnership, he wanted to get married and I never considered it neccessary, so if somebody reads this, take this an example of how no to do in life :-()

Why not accept the solicitor's offer ?

It won't cost you anything

Yes, you could probably do it yourself but it will require documentation such as death certificate, proof of probate, identification etc

Assuming you weren't married or in a civil partnership, then the tax free threshold is € 16,250. Any amount above that is taxable at 33%

For example, if the bank balances at the date of death were 50,000 then tax of (50,000 - 16,250) x 33% = 11,138

This should have been paid in the year following the death, so there may be late payment fines and interest due

Again, let the solicitor sort it out

Thank you very much!

I suppose you are right, I just did not want his sister to be charged with "my fees".

 

[Farma1]

Hello, we both contributed to the accounts

In this case you should provide the solicitor with some sort of estimate as to how much you have contributed to this (either as a % or total). You should only pay tax on the part your partner contributed minus the CAT allowance of €16250.

This, understandably, after all this time might not be the most scientifically accurate calculation, but it needs to be something you could stand behind if revenue asked: "How did you arrive at this figure?" e.g. both our salaries were paid in there. At the time I earned 2000 per month and he earned 3000 per month therefore I am counting 3/5th of the amount as inheritance etc.

 

[Bronte]

I don't live in Ireland any more. Could I pay the tax without a solicitor? the bigger amount of the estate the bigger the solicitor´s fees are?

Very sorry for your very sad loss.

- Normally the solicitor fee is a set fee. Sometimes it's based on the size of the estate. Either way it's not your concern so do not let it trouble you.
- It seems you contributed to the bank accounts, so some, most or all of it already belongs to you. Do what Farma advised as to making a good estimate of your share and inform the solicitor.
- Did you have any expense in relation to the funeral, you are entitled to be paid this back.
- Are you certain you had no rights to any other part of your partner's estate? Or that he did not nominate you in the bank to receive the proceeds in the event of death. It seems if you are to pay tax the solicitor thinks you are entitled to something.
- As a non relative you are Inheritance Tax Threshold C €16,250. So anything you receive above that is taxed at 33%.

Example:

€50000 50/50 is €25000. So you take €25000. His €25000 is minus your threshold of 16,000 = 9K, Tax 33% = +/- 3K. So you would in total receive 47K . If you put in more than 50% you'd likely pay no tax.

 

[LoracB]

Very sorry for your very sad loss.

- Normally the solicitor fee is a set fee. Sometimes it's based on the size of the estate. Either way it's not your concern so do not let it trouble you.
- It seems you contributed to the bank accounts, so some, most or all of it already belongs to you. Do what Farma advised as to making a good estimate of your share and inform the solicitor.
- Did you have any expense in relation to the funeral, you are entitled to be paid this back.
- Are you certain you had no rights to any other part of your partner's estate? Or that he did not nominate you in the bank to receive the proceeds in the event of death. It seems if you are to pay tax the solicitor thinks you are entitled to something.
- As a non relative you are Inheritance Tax Threshold C €16,250. So anything you receive above that is taxed at 33%.

Example:

€50000 50/50 is €25000. So you take €25000. His €25000 is minus your threshold of 16,000 = 9K, Tax 33% = +/- 3K. So you would in total receive 47K . If you put in more than 50% you'd likely pay no tax.

thank you very much

In this case you should provide the solicitor with some sort of estimate as to how much you have contributed to this (either as a % or total). You should only pay tax on the part your partner contributed minus the CAT allowance of €16250.

This, understandably, after all this time might not be the most scientifically accurate calculation, but it needs to be something you could stand behind if revenue asked: "How did you arrive at this figure?" e.g. both our salaries were paid in there. At the time I earned 2000 per month and he earned 3000 per month therefore I am counting 3/5th of the amount as inheritance etc.

Thank you, both salaries were paid there.