Inheritance Tax Submission by Solicitor

[irishmoss]

Could somebody please claify the following:
Solicitor engaged by relative to take out probate on deceased persons estate ( died intestate)

Is it normal for the solicitor to submit Inheritance tax to Revenue?
Benificiary is Irish resident living here but has not been requested to submit tax no to solictor but there is an amount deducted from the estate for this service.

No division of assets has taken place yet, details have been taken from a statement of account provided by solicitor

 

[huskerdu]

To clarify, there is no inheritance taxon an estate in Ireland.
The relevant tax is Capital Acquisitions Tax, which is paid by the recipitant on any gifts or inheritance. There are slight differences in the treatment of gifts and inheritances in some circumstances but its mostly the same.
See here for details,
http://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_acquisitions_tax.html

THe tax is payable by the recipient and there are differing tax-free thresholds depending on the relationship to the person who gave the gift of inheritance
Therefore, the tax is not taken off the estate, and the solicitor would not know how much it due from each benefitiary.

Can you explain exactly what the wording what on the documentation and give some indication of how much it was, as a percentage of the estate,as this may help give a better answer to your question.

 

[irishmoss]

Thank you huskerdu

The word inheritance tax is mentioned twice. First an amount is deducted from the assets and this is marked as inheritance tax. The second reference is their fee for preparing the inheritance tax return to revenue which was in addition to their fees for handling the estate.

I will be asking for clarification but in the meantime could you also advise what rate of CAT applies. The deceased person (brother) died in 2009 but no distribution has been made yet. Is it the year the person died or when the assets are distributed?

Thank you for your time

 

[huskerdu]

I dont know all the details. I would suggest that you read the link above which should give all this information.

I think the rate in 2009 was about 30%