Inheritance tax: who is responsible?

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Thirsty

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According to to a leaflet from FLAC

"An executor or administrator must ensure that anyone liable for inheritance tax pays what is due promptly, as the executor may be personally liable if it is not paid."

Is this right?

I thought it was the responsibility of the beneficiary to complete the Self-assessment forms & pay the tax when they receive their inheritance?

update to add: from the Revenue.ie site they say " The beneficiary is responsible for making the return and paying the tax due."

and here's the FLAC link
[broken link removed]
 
You can't trust the beneficiaries to do what they're supposed to do. From experience.

Best, as an executor, to work it all in to the distribution.

mf
 
You can't trust the beneficiaries to do what they're supposed to do
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I understand what you are saying, but first off, is what the FLAC say in their leaflet correct? Can Revenue legitimately come after me as Executor in respect of beneficiaries inheritance tax?

My other question would be, how can I 'work it in'?

If Beneficiary A is left (say) a valuable painting and doesn't want to sell it (and the will doesn't say it has to be sold), where do I get the money to pay the inheritance tax?
 
Thanks for that Joe90; I think you could well be right & the FLAC leaflet is out of date.

Just one other thing that's bothering me & this is from the Revenue leaflet you've referenced above...

Requirement to appoint an Irish-resident “agent” who will be responsible for pay and file procedures where beneficiaries are non-resident.
One area of concern relates to the payment of CAT by non-resident beneficiaries. To address this situation, an Irish resident personal representative taking out probate or letters of administration will be appointed as an “Agent” of a non-resident beneficiary entitled to a benefit exceeding €20,000. The agent will be responsible for the pay and file requirements of the non-resident beneficiary. [my emphasis] In this regard, the agent will be entitled to retain funds adequate to meet the CAT liability from any amounts due to the beneficiary under the control of the agent. The liability of the agent will be restricted to the extent of the funds under his/her control which are available for distribution to the beneficiary.
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One of the Beneficiaries in my case is resident abroad & has been left a non-cash asset, definitely over the threshold value & they will have to pay inheritance tax. There are no other funds due to this person that I can retain... what happens then?
 
Thirsty said:
There are no other funds due to this person that I can retain... what happens then?
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You could ask the beneficiary to pay the tax himself, or pay it to you and you pay the tax.

If you are unsure of what you are doing you ought to get professional help from a solicitor or accountant who understands the application of CAT etc.

In relation to FLAC and revenue, I'd ignore what Flac says, they might, or might not be right. But revenue will always win out.
 
"I will bow to MF1 as CAT is not my area but I understood the principle of "secondary accountability" had been removed see page 4 [broken link removed] and http://www.ohanlontax.ie/downloads/2...badtheugly.pdf"

No, I was wrong on that. Secondary accountability has been removed except in the case of non resident beneficiary.

mf
 
Thanks for that bronte, I think the conclusion is that the FLAC leaflet is out of date & revenue info is correct.

Reading the info again, it would appear that my liability for the nonresident beneficiary's inheritance tax is limited to any cash funds due to them that I can hold on to ( which in this case is zero).

Will post back once I've confirmed (or otherwise).
 
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