Property undervalued for probate. Sold for 50% more. Big CGT bill

If the excess over probate was €100,000. The estate would have to pay 33%, €33,000. The balance, €67,000 Would be transferred to beneficiaries and they would have to pay 33% of This, €22,110. Total pay out is €55,110 instead of €33,000 If the excess was listed on the probate valuation.
 
I am facing a similar problem myself.
My sister died 6 years ago, leaving a house, no will.
I am the only relation.
I had it valued by an estate agent at date of death, and I am only getting to deal with it now.
Obviously the housing market has moved higher.
Reckon theres a 150K difference between then and now.
What date of valuation do we think Revenue will assess on it?

Thanks
 
The Executors can file a corrective affidavit with revenue. It’s a fairly simple form CA26 sworn by the Executors. They must set out the error made on the original probate forms and back it up with a correct valuation from the same auctioneer. The auctioneer may explain how the error in valuing the property arose. It is important to note that the value of property for probate is the value as at the DATE OF DEATH and not the current value. If the beneficiaries receive over their threshold they are each liable for CAT (inheritance tax). The difference between the value of the property for probate and the Sale Price attracts CGT (capital gains tax) Both taxes are set at 30%. There is not usually a problem filing a CA26 in genuine cases such as this where it is obvious that property did not rise by 50% in Ireland in such a short space of time. Good luck and I hope you can get it sorted to your satisfaction. Nobody likes to pay TOO much tax.
 
Interesting thread - as a follow-up question in cases where CGT is payable (i.e. the sale price is greater than the value on date of death) can some/all of the CGT paid be set off against any CAT payable?

Case 1) Executor sells house and distributes the proceeds to a beneficiary. Is the value of this distribution reduced by any CGT paid? (For example house is valued at 400,000 on date of death. Later sold for 460,000. The gain is 60,000 and the CGT is 20,000. Thus 440,000 is distributed and used as the value of the inheritance for CAT purposes)

Case 2) Executor transfers house to beneficiary, and beneficiary then sells the house. Can any CGT paid by the beneficiary be offset against the CAT due, either to lower the value on which CAT is calculated, or as a credit against the CAT due? ("same event" relief?) I am trying to figure out if total tax paid (CGT+CAT) in case 2 would be the same as, greater than or less than case 1.
 
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