What exactly do you mean here?solicitor made a mistake apparently the wrong value was put in for the property, the valuation price was put in instead of the actual price which was 40k
Ok so all the beneficiaries recieved what I assume were the final accounts , a letter to discharge the executor & a request for bank account details around 3 weeks ago.All beneficiaries presumed this was all being wrapped up & the benefit was going to be paid ( as per cover letter from solicitor ) but now it transpires that when making the revenue return the value of the property was given as the valuation price but in fact the property sold for €40 k more than the valuation so the beneficiaries are left waiting to be paidWhat exactly do you mean here?
"Put in" where?
What "actual price"?
This is correct; valuation is given at date of death.when making the revenue return the value of the property was given as the valuation price
Very few Solicitors would be that efficient. If the Solicitor asked for instance PPSN details of beneficiaries he may not be able to lodge the Probate papers until available or he seeks an exemption and submits ppsn at later date.Hi all just wondering if payment to benificeries is made at the same time ie the same day or as their bank details ect come back to the solicitors office? Does everyone have to have returned their paperwork before payment commences ?
Everyone was told the amount each would receive with the final accounts so all were expecting to be paid as letter had stated , benefit would be paid immediately on return of account details ect but now there seems to be a delay because the wrong property value was givenThis is correct; valuation is given at date of death.
The final amount to be paid will be advised to each beneficiary based on the total realised value of the estate less any liabilities and expenses.
Ppsn details were given around 14 months ago probate is through since August 2023, property sold after probate & sale had gone through new owners have keys ect, as far as everyone knows payment was due to be made as stated in solicitors letter upon receiving bank details payment would be made immediatelyVery few Solicitors would be that efficient. If the Solicitor asked for instance PPSN details of beneficiaries he may not be able to lodge the Probate papers until available or he seeks an exemption and submits ppsn at later date.
If the Solicitor doesn't have your bank details I'm sure you can ask for a cheque to be posted out.
Why would you deliberately erode the beneficiaries' lifetime Group A Thresholds?In the context of an unpredictable property market, is there room for some "creative valuing" possible with the aim of reducing payment of tax to revenue.
For example, if I am Executor and the estate comprises a property estimate value 1 to 1.1 million, with 4 beneficiaries. I could suggest to EA they value it at 1.2m.....EA can often be encouraged to offer a bullish or bearish valuation, and its all very subjective.
If the property ends up selling at 1.2m there would be no estate tax payable. No CAT payable either. Effectively, with choosing a high valuation price you reduce likelihood of tax exposure to estate or beneficiaries.
Or am I missing something?
I don't understand yours?I'm not sure I understand the question @T McGibney
Is it not the actual inherited amounts that deplete the threshold?
No, the probate valuation determines the amount of the inheritance.In my example, i meant that the house is sold, and the beneficiaries each inherit 1/4 the value of the estate (assets less costs, taxes etc). The amount they inherit depletes the threshold. Not the probate valuation.
The reason I expected it to be paid was because the solicitors cover letter stated that it would be paid immediately on return of bank detailsThe property value given wasn't wrong - it was a valuation at the time of death, which is the correct value to submit
The fact that the property was later sold for a higher value means that the estate has to pay Capital Gains Tax on the increase ie 33% of 40k and the rest can be used to increase the amounts passed on to the beneficiaries
Obviously, the executor has to file a revised affidavit with the Revenue, arrange to pay the CGT, pay any outstanding bills (eg solicitors fees),finalise the accounts and distribute the remaining balance of the estate
Why you think this can all be done in a matter of days is a mystery to me
The property value given wasn't wrong - it was a valuation at the time of death, which is the correct value to submit
The fact that the property was later sold for a higher value means that the estate has to pay Capital Gains Tax on the increase ie 33% of 40k and the rest can be used to increase the amounts passed on to the beneficiaries
Obviously, the executor has to file a revised affidavit with the Revenue, arrange to pay the CGT, pay any outstanding bills (eg solicitors fees),finalise the accounts and distribute the remaining balance of the estate
Why you think this can all be done in a matter of days is a mystery to me