Executors - Didn't do anything. What now?

dinglebert

antrobus wrote: »

The value for probate will be the value at the date of death, sometime in 2013 presumably. The beneficiaries inherit the asset at its probate value. But the OP and siblings will get half the proceeds when the house is sold, because the "have 1/2 a house."

And depending on what growth there has been in house prices in whatever part of Scotland the OP's mother resides, this may well give rise to a profit, on which CGT may well be payable.

OK I understand. The death was in 2003. The house has increased in value by £35 000 since death based on Scottish Registry average house prices for Scottish Borders and the sale price the house has just made. Therefore the £35 000 will be a 3 way split. Just gets more and more confusing.

antrobus

dinglebert wrote: »

..Now it would seem we are going to have to go down the route of having my fathers will carried out today which is going to delay the sale of the house, cost large amounts of money and frankly cause a lot of upset which shouldn't be needed.

I suppose the blunt answer would be; you should have checked all that before the house was put up for sale, rather than rely on your mother's belief that "half of the house" had been given to you and your siblings.

There is always a difference between beneficial and legal ownership, and it frequently does happen that families in similar situations don't see the point in spending money on taking a will to probate when one half of a couple dies, when they anticipate doing the same a few years later when the other passes away.

I imagine you could contact the survivng executor and complain. But the limitation act might apply, the cost of probate etc might be no different (in real terms) now than it was in 2003, and I doubt you could hold the executor liable for failing to anticipate someone trying to sell the house without first establishing their legal capacity to do so. But that's just my opinion. Your current solicitor might have his own view.

But I'd certainly check out your CGT position, if you have not already done so.













Where do we stand? There were two executors, one now dead.[/QUOTE]

Yorkshireman99

You also need to establish a correct value of the house at the date of your father's death and now in order that the correct calculation of CGT can be made. This is complicated by the various interests so it needs a professional surveyor to do the valuation and, if need, be negotiate with HMR&C. Not a job you can DIY.

dinglebert

Yorkshireman99 wrote: »

You also need to establish a correct value of the house at the date of your father's death and now in order that the correct calculation of CGT can be made. This is complicated by the various interests so it needs a professional surveyor to do the valuation and, if need, be negotiate with HMR&C. Not a job you can DIY.

While I understand your points its not a DIY job. The house has been surveyed and valued prior to its sale. We also have its open market sale price. The house price at the date of his death has been accepted by the solicitors as it is based on government data. There will be minimal GCT as any increase will be divided by 3.

Yorkshireman99

Estate agent's valuations may not be accepted by HMR&C for establishing values. CGT may be payable on the increase in value since the date of your father's death and the final sale unless any of you were resident during that time. That is why I believe you need paid for advice from RICS or similarly qualified surveyor.

dinglebert

Yorkshireman99 wrote: »

Estate agent's valuations may not be accepted by HMR&C for establishing values. CGT may be payable on the increase in value since the date of your father's death and the final sale unless any of you were resident during that time. That is why I believe you need paid for advice from RICS or similarly qualified surveyor.

The valuation was a qualified surveyor valuation not an estate agent. We have different rules in Scotland.

getmore4less

Often there would be life interest that changes the cgt and IHT position.

In E&W it would not need the grant for first death a death certificate would suffice no idea for Scotland.

securityguy

"CGT may be payable on the increase in value since the date of your father's death"

For three people, over thirteen years? They have about £400 000 of CGT allowance over the relevant period. The estimate that "The house has increased in value by £35 000 since death" might be rough, and people might have used some of their CGT allowance, but it seems unlikely to be _that_ rough or that they have used _all_ the allowance.

getmore4less

securityguy wrote: »

"CGT may be payable on the increase in value since the date of your father's death"

For three people, over thirteen years? They have about £400 000 of CGT allowance over the relevant period. The estimate that "The house has increased in value by £35 000 since death" might be rough, and people might have used some of their CGT allowance, but it seems unlikely to be _that_ rough or that they have used _all_ the allowance.

CGT allowances do not carry over you get what's available in the year of disposal.

securityguy

Thanks: my misunderstanding.