# Distribution after grant of probate



## aisling o'b (31 May 2016)

After grant of probate issues, how long does distribution of assets generally take? Is there anything that must happen before the assets are distributed? Obviously the solicitor will want to hold enough funds to make sure his fees and outlays are covered. Does the solicitor have a right to decide what happens after the grant issues or is it solely a matter for the executor to decide and to get on with distribution?


----------



## mf1 (31 May 2016)

Piece of string - how long?

Is the estate liquid? Or do assets need to be released / sold?

Getting the Grant is the tedious  and long bit - but now it has issued, the executor should have been keeping an eye on what happens next. 

Most of my clients have the money spent before the Grant issues so distribution is always at faster than lightning speed.

Talk to the executor - they are the decision makers .


----------



## aisling o'b (31 May 2016)

Many thanks for your reply. Sorry; I should have been clearer. I am the executor but the grant of probate has not issued yet. I expect it to be another month or so. The assets for distribution are mostly made of up of some cash and some shares. My solicitor has said we might not be able to distribute immediately as there are some things to be sorted out with Revenue and Revenue will need to give the OK before distribution. I always assumed the executor was in charge and as soon as the grant came through, I was free to start to distribute the assets. I understand that there are some tax things to be sorted such as income during administration and maybe finalising the prior year tax return if the accountant hasn't filed it. Might that be what he is referring to? Getting answers is not the easiest! Thanks again.


----------



## mf1 (31 May 2016)

Ok - that is clearer

And yes, if there are outstanding issues with tax, it really is better to deal with them.

As executor, you could instruct the solicitor to go ahead, but really for the sake of a few weeks, you would better off to wait. 

Can you deal with  Revenue in advance of the Grant issuing so that you're ahead of the game? 

mf


----------



## aisling o'b (31 May 2016)

Thanks again mf. Have got things rolling on the revenue front - both the year prior to death and the parts under administration. I realise I'm leaving myself open a bit if revenue come looking but I'll ensure there's enough left to cover any outstanding taxes. Thanks again.


----------



## Curlywurly (10 Jun 2016)

Can you explain what "income during administration" means? I am an acting Executor in a relatives estate and I did complete the final years tax return and received a certificate of no audit from Revenue. Is it likely that there is still tax to be paid on "income during administration" and if so how do I go about paying that? I am nervous now having read your post  that if I distribute all the estate that there may be outstanding tax due on something I overlooked and I could be personally liable for same. Any help /suggestions would be appreciated.


----------



## aisling o'b (21 Jun 2016)

Hi,
My understanding of the administration period is from the date of death onwards until assets are distributed. So, "income during administration" is income in that period. It would likely be rental income, share dividends etc. It is a return that needs to be made by the administrator or executor.  The following page indicates it is at the standard rate of tax ... http://www.revenue.ie/en/personal/circumstances/bereavement/executors.html


----------



## aisling o'b (21 Jun 2016)

Also section 2.4.1 here ... http://www.revenue.ie/en/tax/cat/leaflets/it41.html#section2


----------



## aisling o'b (28 Jun 2016)

mf1 said:


> Ok - that is clearer
> 
> And yes, if there are outstanding issues with tax, it really is better to deal with them.
> 
> ...



Just wondering if there is a legal basis for my solicitor to say that he needs clearance from revenue before distribution can happen. Our accountant is working through the normal income tax returns that are due for 2015 and part of 2016. We might not have 2016 fully complete but it is in progress and there will definitely be enough money left to sort out any income taxes due. What specifically might the solicitor be referring to in terms of clearance? The only thing I could find on revenue.ie is references to the requirement for Revenue certification of the Inland Revenue Affidavit (CA24) before issue of Probate by the Courts Service (Probate Office). That is no longer required if my reading of this Revenue Probate FAQ is correct.


----------



## aisling o'b (30 Jun 2016)

Spoke to a fairly helpful Revenue official in the CAT section today and he said once the 2015 income tax return is done prior to the 31/10/2016, there is no reason why assets cannot be distributed when the Grant comes through. They said that there was once a requirement, prior to 2010, for Revenue certification of the Inland Revenue Affidavit (CA24), but this is no longer required. 

Does anybody see any reason I can't instruct the solicitor to go ahead and distribute to the beneficiaries instead of waiting for some clearance that there is no requirement for? My solicitor is being very very vague about it and just calling it Revenue clearance.

Many thanks,
Ais.


----------



## Joe_90 (30 Jun 2016)

The current line from revenue is that they require the return up to the date of death and then they may issue a letter confirming that the tax affairs are in order.

Solicitors are requiring that letter before allowing distribution.  So once the return is in to the date of death in 15 or 16 then once the grant issues you should be good to go.


----------



## aisling o'b (4 Jul 2016)

Thanks Joe_90.


----------

