executor wants information on prior gifts

Does a beneficiary in a will have to divulge information to the executor about receiving a prior gift of cash of €20,000? Executor says he needs to know for the revenue but surely it's my business to sort out my tax affairs after the estate has been settled.

legal33 said:

Does a beneficiary in a will have to divulge information to the executor about receiving a prior gift of cash of €20,000? Executor says he needs to know for the revenue but surely it's my business to sort out my tax affairs after the estate has been settled.

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The executor has an obligation to Revenue and can be made liable for outstanding tax due by beneficiaries. Not all beneficiaries are as honest as you and, amazingly, some would take the view, well, now I have the money, who is going to find out? Why should I sort things out with Revenue? Strange but true.

mf

It's a question in the inland revenue affadavit which is the first document that has to be submitted to the Revenue in order to proceed on to extract the grant. Without the information the Revenue can refuse to give leave to apply for the grant.

In any case, an estate cannot be distributed until all beneficiaries show a tax clearance cert from CAT.

Thanks,

Revealing the fact I received a substantial gift from a relative of the executors 10 years ago would cause a lot of emotional pain to the executor because the relative now deceased did not want the executor to know about this gift. Therefore my only option is to disclaim the inheritance. Correct?

That would be my favoured option rather than opening a big can of worms with the executor who I do not wish to hurt.

legal33 said:

Thanks,

Revealing the fact I received a substantial gift from a relative of the executors 10 years ago would cause a lot of emotional pain to the executor because the relative now deceased did not want the executor to know about this gift. Therefore my only option is to disclaim the inheritance. Correct?

That would be my favoured option rather than opening a big can of worms with the executor who I do not wish to hurt.

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Yes, if you disclaim at this stage ( assuming the estate has not progressed very far) you will not need to give details of your previous gifts. You will need to disclaim in writing by a particular format- the executor should be able to obtain a disclaimer form for you from their solicitor. In saying this, I am assuming that by disclaiming your devise or gift would not fall into the residue and that you might benefit from that or on intestacy. So it can depend on the wording of the will but the executor/solicitor acting can advise further.

If you don't want to disclose the prior gift to the Executor then don't.

Instead, write to the Revenue; disclose your prior gift to them; explain that you are not in a position to disclose that prior gift to the Executor; explain that you will deal fully and properly with your inheritance tax liability. I can't imagine anyone in Revenue having a difficulty with this.

MOB said:

If you don't want to disclose the prior gift to the Executor then don't.

Instead, write to the Revenue; disclose your prior gift to them; explain that you are not in a position to disclose that prior gift to the Executor; explain that you will deal fully and properly with your inheritance tax liability. I can't imagine anyone in Revenue having a difficulty with this.

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Thanks,

That's a good idea if there was a 100% guarantee of privacy. I suppose there is always the risk that my prior gift declaration made privately to the Revenue could inadvertently find its way to the solicitor's file the executor has access to. I couldn't take that risk.