Inheritance tax: rebate possible?

[Dinarius]

A relative has inherited a sum of money and some Irish bank(!) shares from an Aunt.

The Aunt died in Autumn '07. Probate took until November '08.

In the meantime, as we all know, the value of the bank shares collapsed.

1. His understanding is that the tax payable, if any, on the inheritance is based on its value at the time of probate, i.e. November '07. Is this correct?

2. I'm guessing this is a long shot, but given the huge discrepancy between the value of the inheritance at the time of death (Autumn '07) and the time of probate, is there any possibility of a tax rebate for the loss?

Many thanks.

D.

 

[ramble]

The relevant value is that as of the valuation date. The valuation date is generally the date of the grant of probate and tax is due on that date (but revenue give you 4 months to pay). His tax should be calcuated on the value of the shares as of the date of the grant of probate, the shares should have been re-valued on this date and tax paid accordingly. Has he already paid the tax? depending on the date of the probate it may not be due yet.

 

[Dinarius]

ramble,

Many thanks.

Yes, the small amount of tax calculated on the date of probate was deducted by the solicitors/executors at source.

The unfortunate thing in all of this is that the amount of the inheritance went from a mortgage clearing amount on the day of death, to the price of a good holiday on the day of probate, due to the fact that most of the inheritance was in Anglo Irish Bank shares.

There was nothing to this probate that anyone can think of, so if it had taken a more normal six months, then there would have been something to sell - assuming the beneficiaries had sold of course.

I guess it's just a case of "stuff happens".

Thanks again.

D.

 

[mf1]

'There was nothing to this probate that anyone can think of, so if it had taken a more normal six months, then there would have been something to sell - assuming the beneficiaries had sold of course.'

Are you hinting at a possible cause of action in negligence against the solicitor?
And as you say, would the beneficiaries have sold anyway?
What ifs, might haves and maybe, maybe, generally do not cut it on a negligence action.

mf