Confused and stressed about CAT due date, advice needed

J

Jimjobjim

Registered User
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Hi there

I’m seeking advice on CAT due date as I am very confused on this matter and will be following up with solicitor tomorrow but hoping someone here can shed some light on this.

My situation is as follows, I lived with my aunt for a year before she passed in March of this year, my aunt left me as the sole inheritor of her will, her house was her only asset, she had hoped I would avail of the dwelling house relief however it wasn’t to be and I will have to pay 100k in inheritance, there’s no issue there and I have gone to bank to avail of mortgage to pay the tax, the bank said I meet their criteria to avail of loan however they will not payout until probate is granted and house is legally in my name.

Now here lies the issue, the solicitor lodged papers to probate office in mid September and I am now unsure if i am open to penalties from revenue as my understanding is that if date of death is used as valuation date then tax is due by 31st October however there is no way probate will be through by then therefore I will not get mortgage to pay 100k inheritance until probate goes through. It seems I’m caught here, in this situation am I definitely open to interest penalties if probate takes longer than 31st October to go through?

My solicitor has not mentioned this to me at all, I’ve only discovered this from doing my own research the past couple of days.

any feedback would be greatly appreciated as this is a very stressful scenario to face
 
Relax.

There is nothing to worry about; the ‘valuation date’ will be the date of the grant of probate.

So the tax won’t be due until 31 October 2021.
 
It’s not relevant to your circumstances, but let’s just say that someone did owe CAT but didn’t have the money. It’s no big deal; you just submit the return, tell Revenue that you don’t have the money yet and they charge you interest at 8% (which is better than some credit unions).

But you’re fine; your valuation date hasn’t come to pass yet.
 
It was the case in the past that residing in the property brings forward the CAT valuation date to the date of death. The valuation date is the
A) The date on which a personal representative is entitled to retain assets for the successor;
(B) The date when the asset so retained;
(C) The date of delivery, payment etc to the successor.
 
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