Taxes Consolidation Act 1997 section 579C

Death of trustee: special rules

Section 579C restricts the scope of the deemed disposal rules under section 579B where a trust's change of residence results from the death of a trustee and the position is rectified within six months.

• Where a trust loses Irish residence because of a trustee's death and becomes resident again within six months, the deemed disposal under section 579B is limited to assets actually disposed of by the trustees during the period of non-residence.
• This means that if no trust assets are disposed of during the brief period of non-residence, the deemed disposal rules have no practical effect.
• A corresponding rule applies where a non-resident trust becomes temporarily resident in the State because of a trustee's death: if section 579B applies within six months of the death, the deemed disposal is limited to assets acquired by the trustees during the temporary period of residence.
• Both rules recognise that a short-lived change of residence caused by a trustee's death should not trigger a full deemed disposal of the entire trust fund.