Case Studies

Case Study 1

We frequently file Inheritance tax returns for Irish people living here who receive gifts or inheritance. They are comforted to have professionals completing the forms accurately and engaging with Revenue on their behalf. They are generally relieved to locate someone who can take responsibility of these matters for them. It is also useful to have all information retained on a file, as Revenue can raise queries some years after the Return is made.

Case Study 2

We acted for a client who was resident in the UK for the last fifty years. She was left a share in a farm in Wexford by her Aunt, who lived and died in Enniscorthy. Unfortunately our client had an exposure to Irish Capital Acquisitions Tax. Thankfully with our advice, we could reduce the liability arising. We obtained a tax number from the Revenue Commissioners to enable our client to file an Inheritance tax return, which we prepared and sent to her for signing. We managed to arrange all of this through correspondence. The client didn’t even have to attend at our office and we dealt with all follow up queries raised by Revenue after we filed her tax return.

Case Study 3 – Expected Farm Inheritance (Section 117)

We represented a client who had spent much of his working life working on the farm owned by his parents. Following his father’s death (who was his last surviving parent), he found that his father had cut him out of his will due to a family argument and had left the entire farm to another family member. Our client brought a claim under Section 117 of the Succession Act, 1965 alleging that his father had failed to make proper provision for him. It was of huge importance in this case that our client had been promised the farm during his life on numerous occasions. As a result of this, he had invested much time and money into farming the land. The case ultimately settled on the day of the hearing and our client succeeded in getting back his inheritance through pre death tax planning.

Case Study 4

We acted for a client who was an executor to an Estate. He was very worried because the Estate had seven different beneficiaries and a disagreement had arisen around the contents of the will. We mediated a satisfactory settlement between the beneficiaries.There was an inevitable delay in the Estate being administered. Eventually we managed to extract a grant of Probate. They then realised there were tax obligations.

• How much was inherited.
• Was it the value at the date of death (2009) of when they received the inheritance (2014)?
• What rate of tax was paid?
• Was it the rate in 2009 or 2014 when they received the inheritance? All the beneficiaries had different answers to these questions leading to widespread confusion.

We were able to reassure the executor and write to him setting out the answers to all of the queries he raised. We also agreed to act for all of the beneficiaries to ensure that each one declared the benefit they received and that no contradictions arose. We also wrote to Revenue to explain why there had been a delay in administering the Estate and dealt with all subsequent queries raised by Revenue.

Case Study 5 – Assurances made regarding Inheritance (Section 117)

Our firm acted for a client who had expected to inherit the family home after his mother’s death. He had lived there during his mother’s latter years in order to look after her due to her ill-health. She had made numerous assurances to him that the house would be left to him and he could raise a family there. For that reason, he took no steps towards buying a property or obtaining a mortgage of his own. Following her death, he was shocked to find out that his mother had made no will and therefore he and his siblings were due to inherit the house equally under the rules of intestacy in Succession Law. Our client brought a claim under Section 117 of the Succession Act, 1965 alleging that his mother had failed to make proper provision for him. He succeeded in his claim and was granted full ownership of the property.

Case Study 6

• We had a client who inherited a share in an Estate in the UK. They were confused about their tax obligations.
• Did they have to pay tax in Ireland?
• Was tax due in Ireland because they had heard that tax was paid in the UK?
• The sterling exchange rate confused the amount they inherited and the amount upon which they had to pay tax.

We were able to get in touch with the UK Lawyers and establish what was inherited, when it was inherited and how it was accounted for when dealing with exchange rates. We were also able to establish that while there was tax due in Ireland, a credit was available for the tax paid in the UK. Importantly we were able to prepare all the necessary tax returns and deal with the Revenue on the clients behalf, ensuring that all due tax was paid, but that all legitimate expenses and credits were claimed, keeping the tax due as low as possible.

Case Study 7

We acted for a client who relocated to Ireland from New Zealand. He was due to inherit from his Father who lived in New Zealand. We were able to advise him how to minimise the tax arising in Ireland on that inheritance.