My grandma died today

Dan-Dan

Hi All , just a quick update , we have the funeral this coming Tuesday , and all is set in that regards , the only thing in the will turns out to be the house , left to my wife and her brother , with 5 x 2k payments into trust funds for the kids , we had the house valued 9market value i.e estate agents) and this set off a whole chain of events


because our Nan lived in a `desriable ` area , a cul de sac , endge of town , only bungalows in the area etc etc , all local builders etc heard of her passing and started calling us etc , estate agents chatted to each other etc , anyway , it got a little too much BUT luckily , an old friend who expressed an interest to Nan a couple of years ago , in purchasing the property when the time came , came to see us , and offered us what we think is a fair price

we have shaken on a gents agreement at a price of £324k

This obviously is just under the IHT threshold , nothing worth over £500 in the house itself (or even close) , not even anything of ours.

One of the estate agents said he would attempt a strategy of 325k upwards , so we think we have found a good solution , and we now feel the vultures can stop circling and we can get on with planning the funeral etc etc in peace

Two questions though , for now , do i put £324k on the probate forms , obviously its very close but still under , i want to be TOTALLY honest so assume this is OK to do ?

The other question , is CGT , assumedly this shouldnt effect us ? if it might , can someone give me a quick run down of how or why ?

Cheers

getmore4less

I think HMRC will have a look at that valuation to see if this is a potential undervalue sale and they are due soem IHT.

if there is a transferable nill rate band from a spouse that makes the total upto £650k so they will be less interested.

No CGT to worry about.

Dan-Dan

hiya

there is no spouse , grandad has been gone years and years , one of the estate agents has issued me a notice saying market at £250k!!! so i could pick that one if i wanted to ?!?

getmore4less

Dan-Dan wrote: »

hiya

there is no spouse , grandad has been gone years and years , one of the estate agents has issued me a notice saying market at £250k!!! so i could pick that one if i wanted to ?!?

If they were married when he died there could still be a transferable nillrate band depending what happened to his estate.

Dan-Dan

i think that might get a bit messy , not because of anything too difficlut but i know he had some little investments that paid out when he died etc 5-6k i think only but to be honest , i just want to get everything wrapped up soon as i can , ....but IHT wise one valuation is at 250k as i mentioned and another at "lets try for £325 and see what happens" with further comments on what to do after that in the next 4 week period , then ends with "295k is the minimum you should take"

surley i should be OK to put £285 or similar ? , after all , i know for a fact it wont go over 325k in any event so i cant be doing anything wrong?

getmore4less

If you put a low valuation then sell for more you could have CGT implications.

You hve agreed £324k then thats what you use as the lowest valuation BUT HMRC might have look and if there is development potential it could be worth more.


If Gdad estate all went to gran then the nill rate band will be £650k

Mojisola

Dan-Dan wrote: »

grandad has been gone years and years

getmore4less wrote: »

If Gdad estate all went to gran then the nill rate band will be £650k

It might be that much - it depends what was in force when he died but it will certainly be enough not to have to worry about IHT.

Dan - it's worth chasing this up.

Dan-Dan

ok , i think the house would never go for more as it has a ceiling in value due to the fact it would need modernisation to generate any extra cash on top of £300k in reality, the people who want to buy it now , is the carer of the person who already lives next door , so they have paid a premium because of that (the buyers of my nans is the daughter of the next door neighbour)

in the real world , we would have held out for £300k , or just under but i think i will go for £320k on the probate to be truthful and i am more than happy to answer for it , if required

Dan-Dan

ahhhh , ok , i need form IH217 , this is starting to make sense i am sure grandad didnt transfer any part of the estate to anyone , the house fell into nans name upon his death

yes , worth checking out as could save me some stress

thanks all

no internet at home as we cancelled nans account and set our own up and its not live till monday , will repot back tomorrow!

getmore4less

Mojisola wrote: »

It might be that much - it depends what was in force when he died but it will certainly be enough not to have to worry about IHT.

Dan - it's worth chasing this up.

It is a % of the current band.
The amount in force at the time before is not relelvent for the current uplift only the % that was unused at the time so if it all went to nan it is 100% of £325k making the total £650 and a simple form to supliment IHT205

(note if the Gdads death was before 1975 this will be different)


http://www.hmrc.gov.uk/inheritancetax/intro/transfer-threshold.htm