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bigduckontax, Accountant
Category: Tax
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I am the executor and beneficiary of my Aunts estate in

Customer Question

I am the executor and beneficiary of my Aunts estate in Ireland.
The house has been sold and monies from property and cash assets are now in the (Irish) solicitors account.
We requested that the solicitor complete the tax return (which he has done and it was submitted today) but he is indicating the estate will not be distributed until the tax has been agreed by the tax office.
It is already agreed that we will pay our own tax to Irish revenue.
Is it true that
a) if we completed the tax form ourselves then he would have distributed the estate anyway? ie. this is just a delay excuse.
b) As Executor I could ask for monies to be transferred to my account now regardless of tax return being agreed by revenue office?
c)Given that the house buyers delay caused a week for the Euro to weaken against the £ the UK beneficiaries have lost already over €10,000 - hence the urgency. Is this not a reason for him to transfer funds to the executor anyway?
d) The tax may differ by a few Euro's but in principle it is virtually the correct figure.
He has no right to hang on to the funds now? as any correction could be made after.
Many thanks, John
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.

Hello John, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

a) I suggest that the solicitor is not prevaricating in the slightest. It is normal for tax to be paid before an estate is distributed.

b) No, it would be most improper and could lay you. as executor, open to actions by other beneficiaries not to mention the taxman, but see below at d.

c) The fluctuations in foreign exchange effect us all and frankly one just has to lump it.

d) The solicitor is, in my opinion, quite correct to hang on to funds until the taxation position is confirmed and settled. An interim distribution could, however, be made, but that is entirely at his discretion and might, indeed, involve the consent of other beneficiaries not to mention Irish succession law and the terms of the will.

I am so sorry to have to rain on your parade.

Customer: replied 1 year ago.
Hi Keith,Tax may be paid but the estate is simple and the sum easily calculated - does it need the tax office to agree the sum? Would you not just pay with the return.
I though it was normal to have funds transferred to the Executors account (I would then pay the tax from the dedicated account which I opened).
It was agreed that the tax would be paid by me anyway so the gross figure can be transferred before or after the return has been agreed surely?
Is interest paid if he hangs on to the funds?Many thanks, John
Customer: replied 1 year ago.
Hi Keith,
Would you mind answering my response pls (I don't think you fully answered the question re executor account)
I thought it normal practice for the executor to hold the funds?
Thanks John
Customer: replied 1 year ago.
Thanks for your answer keith but my question was a point of law which is why I selected legal advice required. I'm sorry but this does not answer it sufficiently
Expert:  bigduckontax replied 1 year ago.

It is normal for the executor to hold the deceased fonds. One of the duties is to collect all the deceased's assets and realise or distribute them as appropriate in accordance with the will if any or if not, according to the rules for intestate succession.