Can CGT be paid from the estate ?

Good Morning

Family home just sold and was advised only yesterday that there is some CGT(Capital Gains Tax) about €9K and that we need to engage an accountant to file a return and discharge the liability ,

If we get an accountant any idea how long does a CGT take to be completed and filed with Revenue ?

Can the CGT /€9k be paid from the estate ?As the sale of the house cheque is sitting in the solicitors bank .

Do we have to wait until CGT is completed before the remainder of the estate can be equally distributed to the siblings (÷) 4 ?

Thanks

ciarano said:

and that we need to engage an accountant to file a return and discharge the liability ,

Click to expand...

You can absolutely do this yourself it’s very straightforward and you don’t need to pay anyone.

Thanks for the Partial reply

Can the CGT /€9k be paid from the estate ?As the sale of the house cheque is sitting in the solicitors bank .

Do we have to wait until CGT is completed before the remainder of the estate can be equally distributed to the siblings (÷) 4 ?

Are you Irish-resident?
When is the CGT due?

Thanks for the reply
Yes 100% Irish resident
Only notified by solicitor yesterday about CGT when we were querying when will the estate be distributed among 4 of us / House sold about 3 weeks ago
Thanks

In that case, your solicitor may be agreeable to paying your CGT liability directly from your share of the estate proceeds.

Given that most CGT liabilities are payable on 15 December annually there may actually be no hurry in paying the liability if you now have almost a further 10 months to meet that deadline, and it might be more advantageous to opt to pay it yourself, and to use that to persuade the solicitor to have all ready for you and the other beneficiaries well ahead of the tax payment deadline.

Thanks a Million T Mc Gibney much appreciated

To answer the question - yes the CGT can be paid from the sale proceeds held.

Going a little further under the hood, I wonder is this actually a sale by an executor or administrator, with sale proceeds to be then distributed to four beneficiaries (all Irish resident) ?

If so, the CGT liability is that of the estate, and the executor or administrator is liable for making the return and paying the tax.

Is this the situation? And is the executor one of the four children?

If so, in this situation, the solicitor has no particular liability for this CGT. However, the solicitor does have a duty to protect the client executor.

If all four beneficiaries are happy to sort this out among themselves, they can agree this with the executor and the executor can just tell the solicitor to distribute funds. (To be clear, if the facts are as surmised by me, what the solicitor is seeking to avoid is the executor being on the hook for CGT but not having funds kept back for it, and asking the solicitor 'how did you let this happen?')

Do we have to wait until CGT is completed before the remainder of the estate can be equally distributed to the siblings (÷) 4 ?

Even a very prudent executor (if I have correctly understood the situation) should be happy to distribute the bulk of the money now, holding back enough to cover maximum likely CGT and filing costs. Chances are that the CGT is already ascertained to a high degree of certainty anyway.

Thanks for the reply MOB really appreciate it
You were bang on regarding the other information
Thanks do much

Thanks again everyone for the excellent advice.
Deeply appreciated