When exactly does inheritance take place?

[samfarrell]

Is it at the moment the bequeather dies, is it when probate is finalised, or something else ?

 

[Sophrosyne]

On death the deceased’s assets passes to his/her estate.

With some exceptions, an inheritance passes to a beneficiary when estate administration is finalised.

 

[samfarrell]

On death the deceased’s assets passes to his/her estate.

With some exceptions, an inheritance passes to a beneficiary when estate administration is finalised.

Thanks
So, what then would occur in the scenario where the bequeather dies, probate was granted but for whatever reason administration of the estate was never finalised for years. I am thinking here in terms of inheritance tax. If the beneficiary is only liable from the time they actually inherit, is the time between the bequeather dying and admintration finalising not taxable (which i doubt) What happens for these 'lost' years ?

 

[jpd]

The beneficiary will be taxed based on the value of the inheritance at valuation date - whether he actually receives the inheritance then does not have any effect on the tax due

See here [broken link removed]

 

[samfarrell]

The beneficiary will be taxed based on the value of the inheritance at valuation date - whether he actually receives the inheritance then does not have any effect on the tax due

See here [broken link removed]

Ok
I know in this case valuation was done at the time of probate, however tax was 'deferred'

 

[jpd]

I knew people you got burned when they inherited a house in the boom along with a large CAT tax bill. By the time the property was sold over a year later due to holdups in finalising the estate, prices had dropped a lot and paying the bill was a huge burden

 

[elcato]

I knew people you got burned when they inherited a house in the boom along with a large CAT tax bill. By the time the property was sold over a year later due to holdups in finalising the estate, prices had dropped a lot and paying the bill was a huge burden

A good solicitor would have advised not valueing the estate for probate until the house was sale agreed and contract signed by buyer. This would have counter acted this. That said it may have been a bad experience that started this trend in the first place.

 

[NoRegretsCoyote]

I knew people you got burned when they inherited a house in the boom along with a large CAT tax bill. By the time the property was sold over a year later due to holdups in finalising the estate, prices had dropped a lot and paying the bill was a huge burden

The Group A threshold in 2007 was nearly €500k. They would have paid CAT on the excess of the inheritance over that.

Even with the fall in house prices I doubt that tax on a windfall of that size was a huge burden to anyone!

 

[jpd]

The revenue were demanding payment and the house was not yet sold - so it was actually quite a burden

the house eventually was sold for almost half the probate valuation

 

[john luc]

And the lefties say so what

 

[jpd]

Well, they paid tax on an inheritance they never got - can't imagine even the lefties promoting taxing non-existent income or gains or wait, isn't that communism?