Sorting out TWO estates ...

joe_mcclaine

Three proper valuations booked for next week. We might have to re-write the IHT205 and PA1. They reckon I've overestimated the value of the house by about 25%. Still well within IHT limit though.

Surely it's better to over-estimate for probate purposes? With 5 beneficiaries and 2 estates with a property only worth about £100k max, we're never going to need to worry about CGT, are we?

Anyway, the fees seem to be much of a muchness. One was an 'all in' fee which matched another's estate agent/solicitor separate fees and I've still to get details of the third's fees.

All said the same as the advice in this thread ... "don't worry about Land Reg. we'll deal with it, or the solicitors will".

SeniorSam

nom_de_plume wrote: »

There is a possibility of capital gains on the 50% of the property from the step dad's death in 2013. However, given the value of the estate and 5 beneficiaries of the property, capital gains tax allowances should be more than sufficient to negate the need to actually pay any.

There would not be any CGT in respect of your father's death in 2013 since his estate was past to your mother, so the only value needed is that at the date of death of your mother.

CGT would only be aplicable if there was a big difference between the value at death and the sale price, but as this is split between 5 beneficiaries, each with a CGT allowance, I think you can forget CGT completly.

Sam

Pricivius

SeniorSam wrote: »

There would not be any CGT in respect of your father's death in 2013 since his estate was past to your mother, so the only value needed is that at the date of death of your mother.

CGT would only be aplicable if there was a big difference between the value at death and the sale price, but as this is split between 5 beneficiaries, each with a CGT allowance, I think you can forget CGT completly.

Sam

How did the estate pass to the mother on the death of the father? OP said they held as tenants in common so the father's share passed under the will to the 5 kids, didn't it?

SeniorSam

The property would normally be held for the spouse before passing to the children.

When the spouse dies, the property would be the unencumbered property of the beneficiaries.


Sam

Pricivius

SeniorSam wrote: »

The property would normally be held for the spouse before passing to the children.

When the spouse dies, the property would be the unencumbered property of the beneficiaries.


Sam

But won't that depend on the wording of the wills? Either the wills left the 50% TIC share to the spouse or they left the 50% TIC share to the kids. If the latter, then the estate did not pass to the mother on the death of the father, right? We need to clarify what the wills actually said to know this.

SeniorSam

Think about it. If the house has a value of about £100,000 and half was given to the children, the spouse would be without a home. If, as I believe it was 'normally worded' the 50% from the husband was gifted into the Trust with the spouse protected until her death, then the 50% has not gone to the children until the spouse has died. Therefore gifted to the Trust and no CGT when sold.

Sam

Pricivius

I agree that would make most sense and is what I would expect to see, but the OP has suggested the will says something else. To be certain, the OP needs to clarify what the wills say. I don't think advice should be given on what we would normally see, or what we would expect to see...

joe_mcclaine

SeniorSam has got it spot on.

Tennants in Common.

Mirror wills.

Each leaving their equity in the house to 5 people on death - with the wording re trust and what-not to prevent us kicking the surviving spouse out and flogging it.

We've seen a solicitor.

All crystal clear now.

Job jobbed.

Cheers.

SeniorSam

Well done Joe. You have done a great job in helping your family.

Sam