Valuation Date

The valuation date is the date on which the market value of the property comprising the gift/inheritance is established.

In the case of a Gift, the Valuation Date is normally the date of the gift.

In the case of an Inheritance, the Valuation Date is normally the earliest of the following dates:

  • the date the subject matter of the inheritance can be retained for the benefit of the beneficiary;
  • the date it is actually retained for the benefit of the beneficiary;
  • the date it is transferred or paid over to the beneficiary.

Valuation Date will normally be the date of death in the following circumstances:

  • gift made in contemplation of death (Donatio Mortis Causa);
  • where a power of revocation has not been exercised;
  • where property passes by survivorship or under a trust.

The following examples illustrate the Valuation Date for various benefits.

Example 1

Valuation Date of an inheritance taken under a Will

Mr. O’Toole in his will left the following property absolutely:

  1. his house to his sister, Anne, who was residing with him;
  2. €50,000 pecuniary legacy, to his nephew, Brendan;
  3. the residue of his estate, consisting of quoted shares and bank accounts, to his brother Charles.

The Valuation Date for each inheritance would normally be –

  • the date of death in respect of the house (Anne is living in house already);
  • the date of grant of probate in respect of the pecuniary legacy (if the legacy was paid to Brendan prior to that date, the date of payment would be the valuation date);
  • the date of grant of probate in respect of the residue.

Example 2

Valuation Date of Inheritance taken under an Intestacy

In the case of an intestacy, the Valuation Date of each inheritance taken by the next-of-kin would normally be the date of grant of administration.

Example 3

Valuation Date of Gift and Inheritance taken under a Deed

Joe Murphy, on his retirement from farming, executed a deed transferring his lands as follows:

  1. to his sister Margaret, for her life (this is a gift);
  2. on her death to his nephew John absolutely (this will be an inheritance taken from his uncle Joe on Margaret’s death).

The respective Valuation Dates are as follows:

  • the date of the deed in respect of the gift of a life interest to Margaret;
  • the date of Margaret’s death in the case of the inheritance taken by John.

Note: The legislation provides that the relevant group thresholds, rates of tax, reliefs, etc. used to determine a beneficiary’s tax liability are those pertaining at the date of benefit and not the valuation date.

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