Inherritance Tax

GreenBoy_2

Hi

Sorry if this is in the wrong forum but unsure where to ask this.

Recently my uncle died and has left me a sum of money in his will.

I know his estate was worth over the freshhold for inheritance tax, am i correct in thinking this will have already been paid by the solicitors and therefore any moeny issued to relatives will be tax free or does the tax man get double whammy by also making the recipients pay tax as well...

or will the solicitor not have paid the tax and its purely down to the recipient to declair and pay tax?

Sorry if this is a noobie question but i have never recieved any money from a will before and am therefore unsure where i stand

Thanks for any help provided

Dave

RayWolfe

IHT is paid by the estate, not the recipient. Therefor tax should have been paid before the beneficiaries get their slice.

SeniorSam

GreenBoy wrote: »

Hi

Sorry if this is in the wrong forum but unsure where to ask this.

Recently my uncle died and has left me a sum of money in his will.

I know his estate was worth over the freshhold for inheritance tax, am i correct in thinking this will have already been paid by the solicitors and therefore any moeny issued to relatives will be tax free or does the tax man get double whammy by also making the recipients pay tax as well...

or will the solicitor not have paid the tax and its purely down to the recipient to declair and pay tax?

Sorry if this is a noobie question but i have never recieved any money from a will before and am therefore unsure where i stand

Thanks for any help provided

Dave

Hi Dave,

Any tax payable would have been dealt with before distribution to beneficiaries and the gift to you is not taxable.

It is the responsibility of the Executors to obtain Probate which is not issued unless tax has been accounted for.

Sam

GreenBoy_2

Excellent news - thank you for your replies!

John_Pierpoint

Were you left a specific sum in the will - ie" I leave 50,000 pounds to my only nephew John Smith"

If so how long did the executors take to pay out from the date of death?
There is a concept called "the executor's year".from death. If the executor fails to get his act together in that time, the beneficiaries and the tax man get agitated. The beneficiary getting a specific sum is entitled to interest starting after 12 months. (The tax man is entitled after 6 months but the rate is zero percent at the moment).

If you were part of "the residuary" (Ie "I leave the remainder of my estate to be shared equally by all of my neices and nephews being alive at my death and surviving me by 28 days" ) make sure you get the interest accruing to the money since uncle died plus a R185 form certifying how much tax has been paid on your new source of income.