AMRF ( Both Parents Passed Away)

[SCOTTPLASMA]

Can anyone help with a query. On the 21st of December we opened a letter by chance from a financial planning agent to my late mother (Died 2011 aged 55). In the letter it advised of a circa 75k AMRF with Aviva. We concluded her financial affairs in 2012 and all her assets passed to my father. We had no knowledge of this fund until last week. Our Father passed away in 2017 aged 63. His estate is now getting sorted out but no probate has been granted to date. Obviously this will be included if required in that process. The main query is around death benifit and the tax implications. We are both adult children over the age of 21. I would presume that the AMRF would go directly into my fathers estate at the applicable tax rate ? Or would this be classified as a benifit to his adult children and we would incur higher taxation charges. Any advice would be appreciated when dealing with aviva as we are the executors. Should we get taxation advice or is it straightforward? Thanks c

 

[Feemar5]

See page 15 of the revenues tax and duty manual - approved retirement funds. It would appear in your case that you would be taxed at 30% as both your mother in whose name the AMRF was and her spouse are both deceased. It appears to be taxed under Case IV of schedule D. If a solicitor is dealing with the probate they often have tax specialists who would know the system.

 

[SCOTTPLASMA]

Ya I had guessed same seems a bit unfair as the money was sitting there without his knowledge and he would of recieved when he was alive. I thought the full amount might into his estate as it's still active. Thanks c

 

[Steven Barrett]

Ya I had guessed same seems a bit unfair as the money was sitting there without his knowledge and he would of recieved when he was alive. I thought the full amount might into his estate as it's still active. Thanks c

If no one notified Aviva of your mothers death, they couldn't transfer it to your fathers name.

It will now go to you and your sibling, taxed at 30% but not being part of assets taxed under CAT.


Steven
http://www.bluewaterfp.ie (www.bluewaterfp.ie)