Property for sale after FIL's passing?

getmore4less

How big is this estate?
CGT can be be better than IHT.

You need someone versed with the details to look for mitigation opportunities.

Since you plan a DOV that are often only worth bothering with if there are potential tax saving you should have a suitable advisor already.

Yorkshireman99

getmore4less wrote: »

How big is this estate?
CGT can be be better than IHT.

You need someone versed with the details to look for mitigation opportunities.

Since you plan a DOV that are often only worth bothering with if there are potential tax saving you should have a suitable advisor already.

It is not an option to undervalue for probate so that a lower effective rate can be achieved by paying CGT.

fcandmp

Thanks getmore4less, yorkshireman99. The estate is valued at £649k, so very close to the IHT threshold given transfer of MIL's allowance.

Yorkshireman99

fcandmp wrote: »

Thanks getmore4less, yorkshireman99. The estate is valued at £649k, so very close to the IHT threshold given transfer of MIL's allowance.

In which case HMR&C will be checking closely to see the values are correct.

fcandmp

We knew it was going to be close at the outset, which is why we paid for professional valuations. Challenging when over 60% of the value of the estate is the property.

Savvy_Sue

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.

In this case however the grandchildren are not minors but in their 20s, so unless there's something I've forgotten about in the earlier part of the thread, no trusts involved.

Not disagreeing that professional help would be well worth paying for!

getmore4less

fcandmp wrote: »

Thanks getmore4less, yorkshireman99. The estate is valued at £649k, so very close to the IHT threshold given transfer of MIL's allowance.

Little point in trying to get the DOD value changed let HMRC decide that as you have a figure already in their hands.

Focus on the CGT mitigation opportunities.

Exact wording of the will can determine when the beneficial interest changed for assets that are changing value.
can also make the CGT mitigation more difficult.

Although expenses are not allowable on the IHT(it's the value at DOD) the CGT is on the net proceeds, those sale expenses come off.

getmore4less

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.

With a DOV these can be very simple as there is no difference to doing it as a normal gifts to a minor.

Yorkshireman99

getmore4less wrote: »

Little point in trying to get the DOD value changed let HMRC decide that as you have a figure already in their hands.

Focus on the CGT mitigation opportunities.

Exact wording of the will can determine when the beneficial interest changed for assets that are changing value.
can also make the CGT mitigation more difficult.

Although expenses are not allowable on the IHT(it's the value at DOD) the CGT is on the net proceeds, those sale expenses come off.

Juggling values to try and reduce IHT or CGT is fraught with danger. Emphatically not a job the OP should attempt to DIY. HMR&C are well aware of the games people try and will happily apply penalties if they get an opportunity.