Probate selling query

HellsGranny

Hello,

I inherited a house which I would like to move into. In the case of Probate, does the house sold have to be the one inherited or can I nominate my current house as the probate sale? (Neither house is of a value to attract Inheritance Tax, and I am the sole inheritor).

Any advice welcomed. I find this a confusing minefield.

lincroft1710

Probate means proving a will is what it claims to be, so only property referred to in that will could be subject of a probate sale, which is more usually called executors' sale.

TonyMMM

I don't see what the issue is here if you are the sole benficiary - you don't have to "sell" the inherited house at all, just transfer ownership into your name. The probate documents will just show the value of the property as part of the estate.

You can then sell your current house, bank the proceeds and move into the inherited house.

If there were other beneficiaries and the estate proceeds needed to be distributed, then things would be slightly more complex.

HellsGranny

I already have title, and am packing to relocate. I was wondering what the procedure is and would it attract CGT, does anyone know?

Mozette

No, you just sell your current home - free of CGT and move into the probate house, which is then your home, and provided it continues to be so, will be free of CGT if you come to sell it (assuming you have no other properties).
Inheritance tax would be the only consideration, but you've said it's below the threasehold, so you're sorted!

00ec25

please confirm what you mean by you "already have title" - have you transferred the title of the inherited house from the name of the deceased into your own on the Land Registry register? when did do this?

Your situation is very simple, you sell your original house (this is classed as your principal private residence or PPR), you move into the inherited property.

As your own original house was your PPR you are exempt from any CGT on its sale. Your inherited house then becomes your PPR so if/when you eventually sell it you are again exempt from CGT.

Please appreciate that the above is based on the following 2 assumptions:

1. prior to your inheritance you only owned one house - therefore it was indesputably your PPR
2. the probate and the title you hold for your inherited house were obtained no more than 2 years ago - if you transferred title on the inherited house more than 2 years ago you will need to do another step but if it was within 2 years you can ignore this

HellsGranny

Probate was granted March 2008, and title has been transferred.

Previously I only owned the house I am currently packing up.

Thank you for your help, folks, much appreciated.