For anyone processing Probate Applications and making payments to Revenue to see such a notice may seem strange.
By way of background with the introduction of negative interest rates by the Banks things have changed a lot in the safe keeping of funds due to a beneficiary. Negative Interest Rates are where Banks charge you for having your money in their Bank .
Solicitors have Clients funds all the time with buying and selling Transactions passing through daily .
Sometimes it can be hard to find people who are to benefit under an estate. Sometimes beneficiaries won’t cooperate to take the benefit. They may not give you the PPS number which the Solicitor needs to complete the Revenue Form SA2 .
Revenue as you know want what’s due to them without delay.They have time limits for payments of tax.
You can have the situation where a solicitor might have obtained a Grant , gathered any monies in banks but for example may suffer a delay in selling a property as part of the Estate. If the Solicitors Client account goes over an amount set by their Bank they will be charged what’s called negative interest on those Client funds . This can be substantial and is payable out of clients money.
Up to now that wasn’t a problem but since this was introduced if they go over a certain level in the solicitors client account will incur this negative interest rate is known as a charge on the funds in the account.
The Politicians blame the Banks .
The Banks blame the Central Bank.
Some solicitors have asked Revenue if they would hold the money on Deposit instead rather than have it in the solicitors account but true to form Revenue said they cannot accept payments like that.
They say there’s nothing in the Tax Acts that allows them to do it so we come back to the phrase above ……. Don’t Send Us the Money ! We live in strange times.
If there’s anything you need advice on in relation to matters relating to Wills and Estates please feel free to contact us through email or arranging a Zoom call through our Website .