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My clients 3 beneficiaries have been left an estate equally. There is UK and Irish shares as such I needed an Irish and UK grant to administer the estate. There is about a year between date of death and grant of probates. I am selling most of the shares as part of the administration and the proceeds will be split. For CAT purposes the value will be what they achieved. No CGT issues as shares dropped. 2 beneficiaries wish to keep some of the shares and will have to pay the other beneficiary the value of these shares. Q1 . Do I use value as at date of death for valuing these shares for CAT and for paying the other beneficiary their worth? Q2. There is dividend income which will be treated as estate income and taxed accordingly. Are the beneficiaries who take these shares now entitled to the dividend income after tax and not the other beneficiary. Thanks, Anne

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Posted by (Questions: 28, Answers: 136)
Asked on 4 September 2018 10:29 am
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I think I should value the shares at the date probate issued and this is my valuation for CAT purposes and for paying the other beneficiary. Any thought welcome. Thanks, Anne

( at 4 September 2018 3:33 pm)
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The problem you have outlined is one that comes up all the time for CGT/CAT. A delayed probate resulting in CGT on the uplift from the date of death. This often happens where a house is undervalued at date of death and later sold by the personal representatives, and there is CGT payable on the uplift.
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Posted by (Questions: 5, Answers: 4610)
Answered on 1 November 2018 10:47 am
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Q1 I think that you are correct, valuation dates are the respective probate dates. The beneficiaries could not have sold them prior to this and this is when they become beneficially entitled in possession. Q2 Without knowing all the relevant details, assuming that the dividends have accrued up to the probate dates, and insofar as they have accrued up to the date of agreement by the beneficiaries to take the shares etc. then I would split the after tax income equally between the 3 beneficiaries.
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Posted by (Questions: 15, Answers: 601)
Answered on 4 September 2018 9:10 pm

Great thanks Kevin.

( at 5 September 2018 8:54 am)

Kevin, Just following on from this. If the beneficiaries decide to sell the shares they inherited the base cost for CGT is date of death (section 573 Taxes Consolidation Act 1997). The shares have gone up by 70k from date of death to probate date and I am paying CAT on the increased value. if I sell down the line I would have to pay CGT on uplift from date of death – this seems like double tax and the CGT/CAT offset wouldn’t apply as not the same event. Anne

( at 1 November 2018 9:20 am)