Two personal representatives and annual CGT allowance

booksurr

DCF_Evaluator wrote: »

remember that family wrangles which delay distribution of the estate in years when house prices are rising (ie most years) are just storing a CGT issue up for you!

Good luck all! DCF

remember that if CGT does become an issue it is because the legacy has increased in value. In that case you get to pocket at east another 72% of said increase - where is the negative in that compared to selling "early" just to "avoid" CGT?

tax tail wagging dog !

Only time there is a clear advantage is if you can use the cash released from the legacy to invest in something which will net >72% return across the same timescale

DCF_Evaluator

booksurr

you are absolutely right and I realised that myself as soon as I pressed 'reply'(!). In the 'White Heat of Estate Admin' that fact sadly got forgotten.

it leaves, perhaps - as always - just a couple of 'exceptional cases' ... these might be:

- when one PR/Beneficiary (I am still in the process of understanding the definition of the terms btw) sells out the other, the normal process is for the estate to pay the CGT so all beneficiaries 'suffer'

- the acquirer may be displeased with this as he/she does not see that he/she has disposed of anything

- there are formal and informal ways, expensive and otherwise, of sorting the above (assuming the parties are still speaking); and if the property is to become a second home for the acquirer then CGT will be due at some point anyway ... although he/she may make the case that future non-residency etc plans would make CGT a non-issue; and if the property is instead to become the acquirer's OMR then no CGT will be due at any point anyway

- and - of course - the estate will need to have the ready cash to settle the CGT bill (many, including this example, don't)! In which case we have to assume we need to touch the beneficiary for the cash (who, again, may not have enough ...!)

getmore4less

Even if the will indicates a sale you can still transfer the house to benificiaries at the IHT valuation(no CGT) and they can deal with the CGT issues and get more than one allowance if available.

It can make selling an issue if the buyers are wanting to use a lender that needs 6months ownweship.

Estates paying CGT means there is more to distribute than there was at DOD so everyone still gains.