Do I need to inform bank of inheritance deposit

beetlebailey

Im due some inheritance from the sale of a house. Do I need to inform my bank as to where the money has come from or does the solicitor dealing with the sale and inform the bank? He will be depositing the money via electronic transfer.

Any advice?

Victor

The solicitor might or might not add a comment along the lines of "Joe Bloggs Estate", but it is unlikely to be specific that it is an "inheritance from the sale of a house".

For any amount over €10,000 your bank will definitely need an explanation and may ask for an explanation for lower amounts.

All you need to do is phone / drop in and tell them. They are well used to such deposits and won't normally be asking for details.

PCros

The bank wont query the amount as it's coming from a solicitor, however they may call you the see if you want to invest the money.

The most important thing you need to look at is the Revenue and if you would be required to do a Capital Acquisitions Tax return.

You can see the current group thresholds here - https://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_acquisitions_tax.html

homer911

I'm pretty sure the executor is tasked with doing the tax return and paying out the net amount to the beneficiary

J Cheevor Loophole

homer911 wrote: »

I'm pretty sure the executor is tasked with doing the tax return and paying out the net amount to the beneficiary

Agreed.Your inheritance would be already tax compliant via Solicitor / Executor interactions. No need to tell banks anything, especially as the bank transfer will have a legal trail in this case.

PCros

The executor does not pay the beneficiaries directly - this is done by the solicitor after approval from the executor.

I would also check if the solicitor is doing the tax returns as well as this is an additional cost. I was in this case and had to file the form myself.

Also the amount is cumulative so if you have received a gift or inheritance in the past the new amount is added to that.

my3cents

PCros wrote: »

The bank wont query the amount as it's coming from a solicitor, however they may call you the see if you want to invest the money.

The most important thing you need to look at is the Revenue and if you would be required to do a Capital Acquisitions Tax return.

You can see the current group thresholds here - https://www.citizensinformation.ie/en/money_and_tax/tax/capital_taxes/capital_acquisitions_tax.html

So here's another question which I know has affected a few people and was wondering how it works out.

Parent in UK dies and leaves house to child in Ireland. House is sold for in excess of the CAT max allowance and child gets money. Is the tax payable in the UK (much higher rates afaik) or Ireland?

PCros

That's a good question and I'm not too sure but I'd say its a minefield.

As far as I'm aware the UK revenue tax you before you get a penny.

Ace2007

my3cents wrote: »

So here's another question which I know has affected a few people and was wondering how it works out.

Parent in UK dies and leaves house to child in Ireland. House is sold for in excess of the CAT max allowance and child gets money. Is the tax payable in the UK (much higher rates afaik) or Ireland?

Surely the tax would be owed to the UK Revenue, so you would have to pay the much higherUK rate, otherwise what is stopping someone moving to a country with no CAT if a wealthy parent is close to dying?

my3cents

Ace2007 wrote: »

Surely the tax would be owed to the UK Revenue, so you would have to pay the much higherUK rate, otherwise what is stopping someone moving to a country with no CAT if a wealthy parent is close to dying?

Actually a quick google found what I was after https://www.revenue.ie/en/gains-gifts-and-inheritance/credits-you-can-claim-against-cat/double-taxation-relief-uk.aspx

The J Stands for Jay

homer911 wrote: »

I'm pretty sure the executor is tasked with doing the tax return and paying out the net amount to the beneficiary

The estate will be paid out bet of any taxes the estate may be required to pay. The amount paid to any beneficiary will be gross of any taxes they may have to pay.

Victor

Ace2007 wrote: »

Surely the tax would be owed to the UK Revenue, so you would have to pay the much higherUK rate, otherwise what is stopping someone moving to a country with no CAT if a wealthy parent is close to dying?

The concept of domicile.

homer911

McGaggs wrote: »

The estate will be paid out bet of any taxes the estate may be required to pay. The amount paid to any beneficiary will be gross of any taxes they may have to pay.

I stand corrected - the beneficiaries are indeed taxed on receipt via IT38
https://www.citizensinformation.ie/en/death/the_deceaseds_estate/dealing_with_the_deceaseds_estate.html