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valuation of property for probate purposes

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  • 29-03-2010 9:23pm
    #1
    newtogame
    Closed Accounts Posts: 34 ✭


    My father died last year and the family home is being valued for the purpose of probate.The executors have got 2 valuations which are very different.My sister and her husband are executors and due to a fall out are not in touch with the other siblings.We would like to get a third valuation as we are worried that we will be liable for capital gains tax if the house fetches more than the current valuation.We will all be well under the inheritance tax threshold even if the valuation is increased.I would be grateful for any help.Thanks


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    #2
    partyguinness
    Registered Users Posts: 8,207 ✭✭✭partyguinness


    Well if the property is valued at, say, €300,000.00 for the CA24 Inland Revenue Affidavit and then is sold for €500,000.00 then you will be liable for CGT on the €200k.

    If the Revenue see a low valuation for Probate and then see it sold for €500k then they can re-examine the initial valuation and bump up the CAT valuations

    There was a sysetm using a form called a Corrective Affidavit, but Revenue have cracked down on its use as the system was being abused.

    Depending on the time of year your father died in 2009, you are your sister have a threshold of €542,544.00 to €434,000.00 each.

    Your solicitor should be able to advise you on this.


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    #3
    bladespin
    Registered Users Posts: 7,343 ✭✭✭bladespin


    Sorry if this sounds silly but are children (grown up) liable for CGT on inheritence? If so, what are the tresholds?


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    #4
    partyguinness
    Registered Users Posts: 8,207 ✭✭✭partyguinness


    bladespin wrote: »
    Sorry if this sounds silly but are children (grown up) liable for CGT on inheritence? If so, what are the tresholds?


    Okay you need to seperate out 2 issues here:

    1. In relation to CAT, all persons are potentially liable. Age is of no relevance

    2. If you subsequently dispose of your asset for a higher figure that the CAT valuation, then you are potentially liable to CGT on the gain.

    There is a relief for CAT/CGT in the same event.

    The thresholds are found on here

    http://www.revenue.ie/en/tax/cat/leaflets/capital-acquisitions-tax-rates-thresholds.html

    The date of death is the relevant date.


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    #5
    Cunsiderthis
    Closed Accounts Posts: 471 ✭✭Cunsiderthis


    newtogame wrote: »
    My father died last year and the family home is being valued for the purpose of probate.The executors have got 2 valuations which are very different.My sister and her husband are executors and due to a fall out are not in touch with the other siblings.We would like to get a third valuation as we are worried that we will be liable for capital gains tax if the house fetches more than the current valuation.We will all be well under the inheritance tax threshold even if the valuation is increased.I would be grateful for any help.Thanks

    It would help, in answering, if you were able to answer the following

    (i) what are the two valuations

    (ii) what are the terms of your fathers will insofar as how many children will have a share in the estate

    (iii) what will be the approximate value of your share in the estate.


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    #6
    newtogame
    Closed Accounts Posts: 34 ✭newtogame


    Thank you for replying to my query.The date of death puts us in the 434k threshold for inheritance purposes.The total value of inheritance for each person will not exceed this.Our worry is the undervaluing of the property and future CGT exposure ,as this would be totally unnecessary.Thanks


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    #7
    Cunsiderthis
    Closed Accounts Posts: 471 ✭✭Cunsiderthis


    newtogame wrote: »
    Thank you for replying to my query.The date of death puts us in the 434k threshold for inheritance purposes.The total value of inheritance for each person will not exceed this.Our worry is the undervaluing of the property and future CGT exposure ,as this would be totally unnecessary.Thanks

    I'm not sure what the approximate amount of inheritance is for each person.

    The executors have nothing to gain from undervaluing the property or assets.

    Tn the current market it's hard to value anything, and remember that if you undervalue now its far better than overvaluing now.

    If you undervalue now, then the revenue might, perhaps, in teh future look for a little more tax from you.

    If you overvalue now, and the property is sold for less, they revenue will, in no circumstances, give you a tax rebate.

    Which is better, remembering that the property market is very uncertain and its hard to value anything definitively?


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