Transferring a house as part of inheritance, query on recording value of transfer.

Jason_Cheshire

My first post on MSE forums, I hope this is the best forum section, I did look for a section on estates and inheritance but did not see anything, if it’s wrong can a moderator please move.

This is my question. I’m an executor of an estate and one of the beneficiaries is having a property that use to belong to the deceased moved into his name. He is actually receiving a cash payment also, as the property value does not cover his quarter share.

Now when I have spoken to the solicitor who is transferring the property she says put down on the transfer questionnaire 0 (zero) funds as no money is being transferred for the property.

Now this beneficiary is a quarter beneficiary of the total estate, and it’s important we have a record of the value he's buying the property as his share. Of course we have this figure agreed between the family, however we need to make sure this figure is legal in writing.

Speaking to the solicitor today, she says my own estate accounts should say what he’s having the property for that they do, however I wanted something else more legal than this. I was really hoping the solicitor would put a value down that indicates its value from the estate.

I’m going to speak to the solicitor again tomorrow, but can anyone else suggest any way of legally recording at the solicitor’s side what he has taken the property for, it does not feel correct to transfer a property for zero money, especially when there are another 3 beneficiaries and everything is being evenly shared. My big fear is after the property is transferred then the beneficiary says the property is worse less and asks for more money from the estate.

Also to remove any confusion, the entire estate has been carried out by myself as a non-professional executor, this solicitor is only being involved now to transfer this particular property.

Any help or advice appreciated.

xylophone

Was the property not valued for probate?

slowpoke_rodriguez

There is a "Deaths, Funerals and Probate" sub-forum in the "Marriage, Relationships and Families" foruma little further down the page, alongside where to get the cheapest rabbit food, etc .

G_M

Your solicitor is right. The two events are different and should be recorded separately.

1) the property transfer. For the purposes of the property transfer, and Stamp Duty Land Tax on that transfer, the correct figure is £0, since the Beneficiary is paying nothing for the property. (the additional payment he is receiving is irrelevant, as it is unrelaed to the property transfer).

2) for the purposes of the winding up of the Estate, your estate acounts should show the value he has received (the actual value of the property plus the additional payment).

I wanted something else more legal than this.

Presumably you valued the property, both for Probate purposes, and for subsequent equitable distribution of the estate?

You may have obtained a formal, paid-for, valuation form an RICS surveyor, or you may have relied on estate agent valuations - either way, those can be used for these purposes.

However, bear in mind that depending on the time-period between applying for Probate and distributing the estate, the value of the property may have changed (increased?), so you may need to get a new updated valuation.

This should be reflected in the way the estate is distributed.

Capital Gains tax may also be due on the estate if the property has increased in value. This would be calculated when you complete a self-assessment tax return for the estate.