Distrust of Co-Executor plus Capital Gains Tax query

bingaling

Thank you getmore4less. You are right - other exec is a complete puppet to wife, has no back bone, he does not really know what is going on since sister is controlling everything. Other exec would NEVER question or doubt wife - he endured the wrath of his wife when my hubby and her hubby opened a joint account for estate. I felt sorry for him.

I am quite shaken with what now needs to be done and, my hubby will be addressing this on Monday. I am so grateful to you and all posters to open my eyes to what potentially may be going on... and further her dealing when appointed of POA.....

konark

Dad died on the 12th December 2015. Date of registration on cert is 17th December. It therefore poses the question of did sister act on her POA to move money between these dates and if or when they were frozen.

Why not ask your husband, he's an executor, or pretending to be, all he has to do is ask father's bank for a statement.

getmore4less

I think you may have to just accept that this relationship with you sister is now broken, from what you have said she has taken the closed door approach so I think it is time to get tough, get to the bottom of the situation. I would resist any attemt of the other Exec to be joint on the probate application

It may be a long hall and will probably need solicitors, you have proove of £60k so enough in the estate to cove the bill.

Hubby gets probate and between you you do as much of the research of the financial history(to mitigate the cost) engage the solicitor to help out do the legal snotty letters and should you need to go to court, leg work asking for back statements on accounts and other assets to establish the inventory.

Also have a think back any purchases by sis, new car holidays etc that they never used to have before she got POA.


OH and first thing monday try to stop the access of the £60k(hubby did copy the things he was signing? begs the other question why did he sign and hand over ID?) by phoning the probate department of the FP.

bingaling

Thank you getmore4less - sister has always been very comfortable to afford anything she desires, she also recently inherited approx £100,000 from her late mother-in-law, which, dare I say it she was sole executor... Her husband can not understand why this questioning etc has happened towards sister and explained how smoothly everything went with his mums estate that she handled... She has never been poor, hence why I questioned why we couldn't pay a solicitor in the very first instance to handle this.

getmore4less

Anyone that has nothing to hide has no reason to be obstructing.

She may be squeaky clean but she is not acting as if she is.

The key issue here is she should not be administrator of this estate.

She can act as/with poa for her hubby so watch out for that twist.

nom_de_plume

bingaling wrote: »

Dad instructed a solicitor, and eventually she signed her half over to me and my sister in 2007 and we became owners. Having taken initial advise from solicitor following Dad's death, since mother is still living, they advised that mothers share would be exempt but Dad's would not (as you have explained above - thank you) Solicitor advised that, as Dad's assets amount to approx. £100,000, (sisters approx declaration) adding half the value of the property (approx £300,000) should still not give rise to IHT as the threshold over which tax is payable is currently £325,000.

It has been suggested that IHT may be due but I'm reading the above as the property is worth £300,000 so father's half is actually £150,000 and thus keeps his estate below IHT level???

bingaling

Thank you nom de plume, yes the value of property is £300,000 so Dads half is £150,000. Initial advice from solicitor is that it therefore fell below the IHT threshold.

Could anyone advise where I could find a value for the property as at 2007 (no value on Land Reg) and what type of valuation would HRMC accept as bona fide for capitals gains?

Keep_pedalling

bingaling wrote: »

Thank you nom de plume, yes the value of property is £300,000 so Dads half is £150,000. Initial advice from solicitor is that it therefore fell below the IHT threshold.

Could anyone advise where I could find a value for the property as at 2007 (no value on Land Reg) and what type of valuation would HRMC accept as bona fide for capitals gains?

You need to hire a RICS registered surveyor who will give you an accurate valuation for the IHT forms and the 2007 value.

Although you and your sister own the property unless your father was paying you the market rent it will still have to be declared as a gift with reservation on form IHT403 so counts as part of your father's estate, although it sound like there will still be no IHT to pay, which makes the transfer of property quite a big mistake, as you go from a position of no tax to having to pay CGT when you sell it.

If you and your sister don't currently complete a self assessment you are going to need to do so for the financial year the house is sold in.

bingaling

Thank you Keep pedalling - under what capacity do we emply a RICS surveyor - I have gone on to a website to find one however, there is a very comprehensive service list and not sure which one is correct to use.

Yes, CGT will be due. Having done a rough valuation estimate of the property from Land Reg for 2007 comparing to the approx sale price estimated today, it appears that the 2007 value may be lower or the same as today's value. I am of the understanding that it is the value of property increase from date of transfer to date of sale. The house declined through Dad's old age....

getmore4less

if there is any data from around that time on equivalent property that can be used.

You may need to get a proper valuation and ultimately HMRC will decide using their office.

least of your problems a for now, once it hits the fan on the other stuff if you make a stand selling the house could become a much bigger issue plenty of tricks for sis to pull on this.

(remember we only get one side of a story observations are based on that)

edit: crosspost

if valuations round 2007 are similar CGT ill not be an issue once you factor your CGT allowance.(not surprising since hat was a peak and the property may have gone down hill)