Information on tax after a bereavement
Duties of a personal representative
As the personal representative you must carry out the following duties within a reasonable time:
- collect assets passing under the will or intestacy
- pay any debts
- divide the remaining assets among the named beneficiaries.
You must inform Revenue as soon as possible of the following:
- the date of death
- your name and address. This ensures that we send any correspondence to you until the estate administration is finalised.
Settling pre-death tax issues
You must settle any outstanding tax issues from before the date of death.
If you distribute the estate without paying any outstanding tax due, you may have to pay the tax yourself.
If you do not claim a tax refund that is due to the estate, you may have to repay the estate yourself.
Where the deceased person was self employed
If the deceased person was self-employed, you can ask their accountant to file any outstanding tax returns. You must make sure that any outstanding tax is fully paid.
Where the deceased person was an employee
If the deceased person was a Pay As You Earn (PAYE) employee a tax refund may be due. Their employer notifies Revenue when the final payment is made. Any refund due will become part of their estate.
Dealing with tax during the administration period
It may take you some time to administer the estate. During this time income may be earned and gains may be made on the assets in the estate.
How is income taxed post death?
You must pay Income tax at the standard rate during the administration period. You will not receive any tax credits or reliefs to offset against the income earned.
You may receive an inheritance with the valuation date as the date of death. Then you as the beneficiary must pay any tax due on the post death income.
Will there be any Capital Gains Tax (CGT) due?
There is no CGT due on the death of a person.
As the personal representative, you may sell an asset during the administration period. If you do, CGT may be due on the increase in value of the asset between the date of death and the date of sale.
There is no CGT due on assets that you transfer to a beneficiary in your capacity as personal representative.
A deceased person bought shares for €12,700, which were worth €19,050 at the date of death.
The capital gain of €6,350 (€19,050-€12,700) is ignored. No CGT is due.
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