Very often Executors or Administrators of UK estates will find that there is an Irish asset to be dealt with, such as a bank account, life assurance policy or shares in an Irish registered company.
The Irish probate system is very different from the UK one particularly in relation to making personal applications and the turnaround time for Grants of Probate and Grants of Administration to issue.
It is important to understand how the system works so that you can determine what needs to be done and if you will have to apply for a Grant of Probate/ Grant of Administration in Ireland and if you will need an Irish solicitor.
When is an Irish Grant required?
An Irish Grant of Probate/ Grant of Administration is required once there is a substantial Irish asset such as a bank account over €25,000. Assets valued less than this amount can often be through a financial institution’s small estates procedure. The institution will release monies to those entitled upon receipt of the appropriate indemnity form being signed. The requirements of each financial institution will vary and therefore it is advisable to contact the relevant institution for confirmation.
An Irish Grant of Probate/ Grant of Administration will be required if there are shares in an Irish registered company or Irish land or property e.g. holiday home, that need to be sold or transferred within the administration of the Estate.
Why is an Irish Solicitor required to act?
The application process for Grants of Probate/ Grant of Administration in Ireland involves two application routes, the Solicitor Application and the Personal Application.
Personal applications are suitable for only the most straightforward of applications. The Probate Office has confirmed that in the following circumstances a solicitor must be appointed:
- Where the person entitled to apply for a Grant of Probate/ Grant of Administration is a Ward of the Court or a person of unsound mind
- Where the person entitled to apply is a minor ( a person under the age of 18 years)
- Where there are issues concerning the validity of a will
- Where there are issues among the next of kin regarding the estate
- Where the original will has been lost
- Where a beneficiary (other than the spouse of the deceased) of €20,000 or over of an estate is non-resident in this jurisdiction and the potential applicant for the Grant is also non resident
- Where the deceased dies without making a will (intestate) and was domiciled outside of the Republic of Ireland and leaves assets within this jurisdiction and no Grant of Administration has been extracted in the place of domicile
- Where the deceased dies domiciled outside of the Republic of Ireland, leaving a will in a foreign language
- Where the deceased dies domiciled outside of the Republic of Ireland leaving a will which has not been proved in the law of domicile and a person other than the executor intends to apply for a Grant of Administration with Will Annexed within this jurisdiction
- Any other circumstances, which, in the opinion of the Probate Officer, require the assistance of a Solicitor. The decision of the Probate Officer in this regard is final.
These rules are based on the Irish inheritance tax (Capital Acquisitions Tax – CAT) regime which provides that Irish solicitors extracting Grants of Probate/ Grant of Administration on behalf of non-residents will carry a secondary liability for taxes in certain circumstances. In order for the Irish solicitor to have a secondary liability for CAT the following circumstances must arise:
- There are non-resident beneficiaries
- The market value of the property taken by such non-resident beneficiaries exceeds €16,750
- The intended applicant/s for the Grant of Probate/ Grant of Administration are not resident in Ireland
- A CAT return would be required.
Therefore, it can be seen that in the majority of UK Estates involving Irish assets a practising solicitor in Ireland will need to be appointed to extract the Grant of Probate/ Grant of Administration.
What information will the Irish Solicitor require?
The application process in Ireland involves a detailed return to the Revenue Commissioners in Ireland. This is completed in a sworn affidavit called an Inland Revenue Affidavit
The Inland Revenue Affidavit is essentially a snapshot as at date of death of the details of the deceased, the applicant for the Grant of Probate/ Grant of Administration, the Estate details, assets / debts and the beneficiaries to include previous benefits and amount of inheritance to be received. This affidavit is filed in duplicate with the application for the Grant of Probate/ Grant of Administration.
At a minimum the following information will be required by the Irish Solicitor to complete the Inland Revenue Affidavit and prepare the application for Grant of Probate/ Grant of Administration:
- Full details of the Irish Estate including date of death valuations
- Full details of all foreign Estate (UK and worldwide) to include date of death valuations
- Details of the deceased and copy death cert
- Irish Personal Public Service (“PPS”) number (this is an Irish social security number) for the deceased (the Irish Solicitor can apply for this)
- Details of the beneficiaries to include prior benefits (gifts/inheritances) and Irish PPS numbers if inheriting over €16,750 (the Irish Solicitor can assist with these applications)
In addition, the Irish solicitor will require a Court Registry sealed and certified copy of any UK Grant of Probate and Will or Grant of Administration as the case may be. Alternatively, if no Grant has been extracted an Affidavit of Laws may be required from the UK solicitor such as in the case of a deceased dying without leaving a will and no UK Grant being extracted.
What steps are involved in the application process?
Once full information is obtained by the Irish Solicitor the necessary PPS numbers can be obtained.
The Irish Solicitor will next make enquiries to confirm whether there have been any prior gifts or inheritances received by each beneficiary that would be relevant for the purposes of CAT.
The application for Grant of Probate/ Grant of Administration can be then be prepared; which will include the drafting of the Inland Revenue Affidavit, Oath of Executor/Administrator and, in the case of intestacy or testate application other than by an Executor, the Administration Bond. The papers will be sent to the client for signing and return. Once returned, the application is lodged with the Probate Office.
What is the timeframe for the extraction of the Grant?
Unfortunately, there is a lengthy delay involved in the issue of a Grant of Probate/ Grant of Administration. Currently, the backlog in the Dublin Probate Office is approximately sixteen weeks from lodgement of papers. Therefore, the process can take a number of months in total.
What happens when the Grant issues?
Once the Grant of Probate/ Grant of Administration issues the Irish Solicitor will collect the assets and ensure that all taxes and fees have been discharged.
Conclusion
As can be seen the process is a detailed and at times lengthy one. Therefore, when dealing with Irish assets in UK Estates it is crucial that you get the correct advice.
If you need any assistance with UK Estates involving Irish assets please contact us.