Can you get a loan/mortgage to pay inheritance tax bill & when exactly is tax due?

O

ophelia2

Registered User
Messages
6
Hi Folks

Take this scenario

A niece inherits a house from her aunt who has passed away, niece has been living in the aunts house for the previous year, there will be a tax bill due on house of approx 260000, can niece obtain a loan/mortgage to pay the tax bill, the value of house is approx 800000

Also, second question does the tax bill become due when person who is bequeathing house passes away or only when the title of the house is passed to the beneficiary? Why I ask is there may be title issues with house and it may take a bit of time to sort out

Thank you
 
Hi

Only know the dates for CAT for sure and not professional and that niece has not got any other gifts from the aunt pervious to this to erode the Class B lifetime limit.

Where the valuation date is between 1 January and 31 August, the deadline for CAT payment is 31 October in that year.

Where the valuation date is between 1 September and 31 December, the deadline for CAT payment is 31 October in the following year

https://www.revenue.ie/en/gains-gif...sholds-rates-and-aggregation-rules/index.aspx

Aunt is Classed B band which is 32500 euro threshold Lifetime limit.

But if your Niece was rised by her aunt and have proof of this medical bills payed by Aunt,Education bills payed by aunt and used to live with her aunt. You could have case with revenue to get the band assessed as Class A if the Aunt had a more off a Parent role in her life. ( If you think you have ground for this best to go to tax advisor who could argue the case for you with revenue.For CAT revenue does not define a child so open to the Official you get and how good your tax advisor is. ( Of course this has to based on facts and truefull ) Class A Band is currently €320000.

I work out CAT quickly work out at €253275

I presume a bank would look at issue a mortgage based on normal learning rules and income requirments. But dont know for sure.
 
irbx said:
Hi

Only know the dates for CAT for sure and not professional and that niece has not got any other gifts from the aunt pervious to this to erode the Class B lifetime limit.

Where the valuation date is between 1 January and 31 August, the deadline for CAT payment is 31 October in that year.

Where the valuation date is between 1 September and 31 December, the deadline for CAT payment is 31 October in the following year



Aunt is Classed B band which is 32500 euro threshold Lifetime limit.

But if your Niece was rised by her aunt and have proof of this medical bills payed by Aunt,Education bills payed by aunt and used to live with her aunt. You could have case with revenue to get the band assessed as Class A if the Aunt had a more off a Parent role in her life. ( If you think you have ground for this best to go to tax advisor who could argue the case for you with revenue.For CAT revenue does not define a child so open to the Official you get and how good your tax advisor is. ( Of course this has to based on facts and truefull ) Class A Band is currently €320000.

I work out CAT quickly work out at €253275

I presume a bank would look at issue a mortgage based on normal learning rules and income requirments. But dont know for sure.
Click to expand...

Thank you very much for your reply and information

Can I ask a question in relation to valuation date, is that the date that the title of house is transferred into the nieces name or is it the date the person dies? Why I ask is there ‘’may’’ be a problem with title of property and it could take some time before it is transferred into the nieces name so would she become liable on date of death or only when house is transferred into her name?
 
IANAL

Date for inheritance tax is taken from when she becomes the beneficial owner.

Revenue will allow installment payments of tax but will charge interest.

I would think mortgage would be assessed on income in the usual way.
 
Thirsty said:
IANAL

Date for inheritance tax is taken from when she becomes the beneficial owner.

Revenue will allow installment payments of tax but will charge interest.

I would think mortgage would be assessed on income in the usual way.
Click to expand...

Thanks very much for your reply, I’m a bit confused now as I’ve now read online that if a person lives in a house that they then inherit the date of date is the valuation date, in this case the niece has been living in the aunts house for the previous year purely on a verbal agreement from the aunty, this doesn’t make any sense as ‘’IF’’ there was a serious problem with title of property and it caused a lengthy delay in getting it transferred into nieces name she is still liable for tax from death of date of aunt on a property that is not legally hers as it’s not in her name?? That appears to be grossly unfair and surely could not be the case? If so that is scandalous.

I’ve pasted what I’ve read online on this topic below


Dates
An executor must be careful to select the correct valuation date for an asset of the deceased and to file a return and pay the due inheritance tax otherwise interest and penalties may be charged by the Revenue.

There are a few different possible valuation dates depending on the nature of the asset and when it becomes available to the estate or the beneficiary.



The date may be:

  • the date of death or;
  • the date of the Grant of Probate or;
  • the date the asset is delivered to the beneficiary.
It is important to identify when the personal representative is entitled to 'retain (meaning deliver or pay) the asset for the benefit of the beneficiary'. If there are a few possible dates then the earliest applies.



Examples:

  • A surviving joint owner of property must use the date of death.
  • A house inherited by a person already living in it - date of death.
 
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