Administration of Estates

What is the estate?

When a person dies, everything they owned, except assets where ownership ceases on death or passes automatically, is referred to as the deceased's estate. After payment of debts and taxes, it is divided among the beneficiaries in accordance with the will, or, where there is no will, among the closest relatives in accordance with the rules in the Succession Act.

What is a personal representative?

A personal representative is either an executor or an administrator. Executors are the people named in the will to deal with the estate. Where there is a will but no executor, or where there is no will at all, the law decides which of the beneficiaries or closest living relatives is entitled to deal with the estate; that person is called an administrator.

The functions of a personal representative involve:

Protecting the assets of the estate: making sure everything is properly insured
Taking reasonable steps to secure property and valuables
Listing property and valuables, and arranging valuations of everything the deceased owned, including land, shares and bank accounts
Finding out what debts have to be paid
Obtaining the other information needed for the legal documents that allow the estate to be dealt with

What is a grant of representation?

A grant of representation is the legal document, issued by the Probate Office of the High Court, that allows the personal representative to collect the assets of the deceased and administer the estate. Where the executors named in the will extract it, it is called a Grant of Probate. Where somebody else extracts it, it is a Grant of Administration with Will Annexed. Where there is no will, it is a Grant of Administration Intestate. Until the grant issues, the personal representatives are generally unable to deal with the deceased's assets, though in limited circumstances an estate can be administered without one.

The steps to be carried out

Going through the deceased's papers: bank and building society books and statements, insurance policies, savings certificates, shares, title deeds and anything else that helps identify the assets and liabilities
Arranging payment of the funeral: financial institutions will generally release funds for this on receipt of certain documentation
Checking the insurance cover on property and other valuable assets
Practical steps such as removing valuables, turning off the mains water, adding locks or an alarm, and informing neighbours, the insurance company and the local Garda station that the house is unoccupied
Obtaining valuations of all the assets and liabilities of the estate as at the date of death
Establishing whether the deceased availed of the Nursing Home Support Scheme (Fair Deal)
Dealing with tax liabilities

Who makes the decisions?

The personal representative should make decisions in consultation with the beneficiaries. Before deciding to sell any part of the estate, for example, they should discuss it with the beneficiaries concerned and abide by their wishes so far as is practical.

How long does it take?

The law allows a personal representative one year from the date of death, but how long it actually takes depends entirely on the circumstances. It is usually upwards of three months before a grant of representation issues, and it can take considerably longer. Three things matter most:

The size of the estate, and the time needed to gather the detail required to complete the Inland Revenue Affidavit (CA24), the Revenue form listing the value of the assets and liabilities at the date of death, together with details of beneficiaries inheriting over a set amount and of any gifts or inheritances they have received since 5 December 1991.
The availability of PPS numbers, required not only for the deceased but for the beneficiaries.
Whether beneficiaries have received previous gifts or inheritances. If so, full details are needed for tax purposes.

Where legal advice is needed

The starting point is retrieving the will and identifying anything that needs legal interpretation, or any circumstances that have changed since it was written. There may also be additions to the will, known as codicils, whose effect needs to be carefully considered. Circumstances calling for advice include:

Any doubt about the meaning of the will or its validity
Title matters: the ownership of property
Where the deceased was divorced or separated
Which account debts should be paid from, and whether there is enough cash to meet liabilities and legacies
Where a beneficiary is under 18 or has a disability
Where a farm or business is involved
The availability of tax reliefs, and steps that can be taken after death so that all possible relief is claimed
Whether insurance policies, credit union or post office accounts have been nominated as payable to a particular individual
Assets the deceased owned jointly with another person
Claims or disputes by disappointed beneficiaries, including the rights of children to make a claim
The need to provide for the spouse of the deceased under the Succession Act
Lifetime gifts that should be taken into account
A legacy payable to a beneficiary who died before the deceased, or a legacy of an item sold before death
Trusts and implied trusts, pension rights, foreign assets, or a deceased domiciled abroad
Partial intestacy: where there is a will, but it does not cover all of the deceased's property
Whether the deceased received payments under the Nursing Home Support Scheme
The rights of cohabitants and civil partners

The Department of Social Protection

A bereavement or funeral grant may be available where the deceased made PRSI contributions. If the deceased was on a non-contributory pension or received non-contributory benefits, the Inland Revenue Affidavit must be sent to the Department so it can decide whether to claim back money paid to which the deceased was not entitled; the personal representative may otherwise be held personally liable. A refund may be due to the Department.

What taxes are involved?

Income tax and capital gains tax arising during the administration of the estate; the personal representative is otherwise personally liable
Capital Acquisitions Tax, the tax on gifts and inheritances
Inheritance tax at the relevant rate on inheritances exceeding the tax-free threshold, which is determined by the beneficiary's relationship to the deceased. This is the responsibility of each beneficiary, unless the beneficiary is not resident in Ireland, in which case the personal representative or the appointed solicitor is responsible
Previous gifts and inheritances received by a beneficiary since 5 December 1991, from the deceased or from any other source, which are aggregated for this purpose
Reliefs and exemptions, where available

What if there is no will?

Where there is no will, the Succession Act provides that:

Where there is a spouse or civil partner and no issue (children, grandchildren and so on), the spouse or civil partner takes the whole estate.
Where there is a spouse or civil partner and issue, the spouse or civil partner takes two-thirds and the issue take one-third. If a child died before the deceased leaving children of their own, those grandchildren take their late parent's share.
Where there is no spouse or civil partner, the issue take the whole estate, on the same basis.
Where there is neither spouse, civil partner nor issue, the estate is divided between the deceased's parents in equal shares, or goes wholly to the surviving parent.
Where there is no parent either, the estate is divided between brothers and sisters in equal shares, with the children of a predeceased sibling taking their late parent's share.
Where the closest living relatives are nephews and nieces, the estate is divided equally between them.
Where there are no nephews or nieces or closer relatives, the estate is divided in equal shares among the next of kin: the nearest blood relatives, in accordance with the rules set down in law.