Property for sale after FIL's passing?

getmore4less

vfm wrote: »

As stated above I would not transfer the property into the names of the Executors. We were asked several times whether we wanted to assent the property our father left into the names of the beneficiaries (who were also the Executors). We refused as we saw the property as belonging to the Estate until it was wound up. This also proved the right thing to do as because the property stilled belonged to the Estate and not the beneficiaries we were allowed 6 months exemption from paying Council Tax (the property was empty). Had the property been assented we would have been responsible for Council Tax as soon as Probate was granted.

Some councils are wise to that exemption as it does not always apply depending on the wording of the will as beneficial interest can happen at DOD.

fcandmp

So, things have moved on quickly post Grant of Probate and we now have a firm offer on FIL's property, which with increased value of stocks and shares would give a CGT exposure of £50,000 to the three named beneficiaries.

We had a professional house valuation performed by a FRICS which looks like will be exceeded by £35000 since DoD in January 2016.

Does the valuation at DoD hold, and we just have CGT liability, or would HMRC expect original valuation to be adjusted? If likely an adjustment does a new grant need to be sought?

Also, it has been our plan to establish a deed of variation such that one Executor's share of the property passes down to 3 grand children. What is the CGT implication now for the original 3 beneficiaries and the 3 additional beneficiaries I.e grandchildren ?

Many thanks

Yorkshireman99

fcandmp wrote: »

So, things have moved on quickly post Grant of Probate and we now have a firm offer on FIL's property, which with increased value of stocks and shares would give a CGT exposure of £50,000 to the three named beneficiaries.

We had a professional house valuation performed by a FRICS which looks like will be exceeded by £35000 since DoD in January 2016.

Does the valuation at DoD hold, and we just have CGT liability, or would HMRC expect original valuation to be adjusted? If likely an adjustment does a new grant need to be sought?

Also, it has been our plan to establish a deed of variation such that one Executor's share of the property passes down to 3 grand children. What is the CGT implication now for the original 3 beneficiaries and the 3 additional beneficiaries I.e grandchildren ?

Many thanks

You need professional help. This should cost you less than the saving. Trying to DIY it will end in tears. You can't do a DOV if anyone involved is a minor.

fcandmp

Yorkshireman99, thanks for your reply. To note the three grandchildren are all in their twenties. In relation to the professional help you suggest, is it a legal / solicitor needed or an accountant do you think?

Mojisola

fcandmp wrote: »

Also, it has been our plan to establish a deed of variation such that one Executor's share of the property passes down to 3 grand children.

Yorkshireman99 wrote: »

You can't do a DOV if anyone involved is a minor.

You can do a DOV if the person giving away their inheritance is over 18 but the new beneficiaries are minors.

You can't do a DOV to reduce the amount of money any minors would inherit.

getmore4less

Yorkshireman99 wrote: »

You need professional help. This should cost you less than the saving. Trying to DIY it will end in tears. You can't do a DOV if anyone involved is a minor.

Only those beneficiary making a variation can't be minor perfectly ok for them to gift to minors.

Keep_pedalling

It sounds like the property is still held within the estate, so the capital gains belong to the estate not to the beneficiaries.

You can't take the increase in share value out of the liability, but you may be able to show that the house was originally undervalued.

Yorkshireman99

fcandmp wrote: »

Yorkshireman99, thanks for your reply. To note the three grandchildren are all in their twenties. In relation to the professional help you suggest, is it a legal / solicitor needed or an accountant do you think?

You need an IHT specialist. This may be a firm of solicitors who has the specialist knowledge or an accountant that specialises. Ask around.

Yorkshireman99

Mojisola wrote: »

You can do a DOV if the person giving away their inheritance is over 18 but the new beneficiaries are minors.

You can't do a DOV to reduce the amount of money any minors would inherit.

True but is does mean trusts have to be taken into account. The whole situation is far too complex to DIY based on free advice.

Mojisola

Yorkshireman99 wrote: »

True but is does mean trusts have to be taken into account. The whole situation is far too complex to DIY based on free advice.

Yes, I agree.