Probate

femur61

GROSS AND NET

Can someone clarify for me, if probate was applied prior to June of this year then it was required put in the gross value of the estate and the rules changed in June when applying they had to put in calculated net and gross amount. Is this correct was there a rule change in June, or was gross and net amount always required on the probate form?


TAX
Also if a person passed away prior to last budget and probate is applied for this year will it be taxed in the year the died or will the new tax rate by applied.

coylemj

femur61 wrote: »

TAX
Also if a person passed away prior to last budget and probate is applied for this year will it be taxed in the year the died or will the new tax rate by applied.

I don't understand your first question but the CAT liabilities on the bequests will be based on the rates that applied on the day the testator died since that is when the assets transfer for the purposes of Capital Acquisition Tax.

The standard rate of tax is 33% in respect of gifts and inheritances taken on or after 6th December 2012.

http://www.revenue.ie/en/tax/cat/index.html

The rate was 30% in the preceding 12 months.

http://www.revenue.ie/en/tax/cat/rates.html

femur61

coylemj wrote: »

I don't understand your first question but the CAT liabilities on the bequests will be based on the rates that applied on the day the testator died since that is when the assets transfer for the purposes of Capital Acquisition Tax.
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Thanks that what I thought.

I was referring to the form the solicitor sends into the probate office. On probate application form they file the gross value always had always to be included but did the law on probate application change in June that the net amount and gross had to be included, or did the two amounts always have to be included.

Hope that is a bit clearer.

coylemj

femur61 wrote: »

Thanks that what I thought.

I was referring to the form the solicitor sends into the probate office. On probate application form they file the gross value always had always to be included but did the law on probate application change in June that the net amount and gross had to be included, or did the two amounts always have to be included.

Hope that is a bit clearer.

1,000 apologies, the fault is mine, not yours. I did personal probate for the estate of a relative a few years ago, before that change you're talking about, that's why I don't understand the question.

femur61

Thanks I was wondering if the solicitor was telling me porkies as probate had been initially rejected due to him not putting the net amount on the probate application. I am confused though how can he put the net amount as in value of the estate after bills have been paid when it hasn't been agreed by me that the bills will be paid.

measurement

Slightly different question on the same topic - I am completing the form C24 myself, and someone else is checking that I have no typos.
They queried why I had put in '30' for the value of a computer, on the basis that the heading of the column says 'millions, thousands, hundreds' which could be interpreted that the amounts are in hundreds, not single Euros.
However, I'm going by the line just above that, which says 'enter whole Euros, not cents' and put the full amount. (the computer is only worth the wireless keyboard, by the way - the rest is junk!).
Who is right?

(btw, on the other question, there are separate sections for Assets, debts, amounts owing to the testator etc. with running totals from page to page, which would mean that the total at the bottom would be the overall net position.
Unless you are selling a house, or have a dispute to deal with, or business stuff, it seems to me that the executor would know more about the testators assets and liabilities than the solicitor, so why ask them to complete the form, which they must find quite tedious anyway)
additional info:
Is this what you are referring to? (lifted from a website which seems to be up to date) It seems to be about property.
Taxable value
A property’s taxable value (s 28) is computed as:
Market value
less liabilities, costs and expenses payable out of the gift or inheritance
= incumbrance free value
less consideration paid by acquirer in money or money’s worth
= taxable value
Tax is charged on the valuation date. In the case of a gift, this is the date of the gift. In the case of an inheritance, it is generally the date of death, or the earliest date on which his personal representatives can retain the inherited property for the beneficiary (s 30).