Benificiary of property buying out another.

SteveHarris14

Hi - Advice needed please
My sister and myself have been left our parents house in their will to be split between us both. House is valued at about 175k
Dad passed away last year, Mum has just gone. I am executor and have done nothing yet.
My sister has been living with Mum caring for her in final years and would like to buy my 50% so that she owns the house outright. She will be able to finance this as she is selling her own house in a divorce settlement.
I am very happy with this arrangement as it keeps the property in the family.
My question is how do I organise this as executor? There is only a small amount in bank accounts that will be included in the estate so IHT and CGT are not an issue. But what about stamp duty, will that be payable? What is the best way to proceed. Any advice appreciated. Thanks

Yorkshireman99

Stamp duty is not due on inherited property. To be fair to both of you a paid for valuation by a RICS qualified valuer should be done. Once you have probate and the money from your sister you can just do the Land Registry forms to transfer ownership.

getmore4less

SDLT would be due on the consideration for buying out the 1/2.

SDLT on consideration in the range £0 - £125,000 is 0% = £0

SteveHarris14

Thanks for replies.
Now 6 months on I have probate granted and have gathered in the small amounts from bank accounts and some shares. This is all to be shared between grandchildren so is not a problem.
That leaves just the house to be shared equally between my sister and myself. We are joint executors of the will.
The house has been valued at 160k. My sister wishes to buy my share so that she will own it outright.
Because my sister cared for our parents in their final years I want to accept a smaller payment of 70k as this is all that she can afford. This is fine and agreed by us both.
How do I proceed?
Does my sister sister just pay 70k directly to me and I then arrange via Land Registry to have the property registered in her name.
Will it not be odd when the Land Registry see the grant of probate showing us both as beneficiaries but the transfer only going to my sister.

Tom99

[FONT=Verdana, sans-serif]You probably have at least two options.

[/FONT] [FONT=Verdana, sans-serif]You both as executors can transfer the property to you both 50/50 then you sell your share to your sister for £70k, 3% stamp duty might be due is your sister still owns another property.

[/FONT] [FONT=Verdana, sans-serif]Alternatively you and your sister could have a deed of variation to vary the will such that in return for your sister paying you £70k you give your inheritance in the house to your sister. Then the executors administers the will in accordance with the variation ie transfers the whole house to your sister.

[/FONT] [FONT=Verdana, sans-serif]If you go the DOV route it would not be valid for IHT and CGT purposes because consideration is involved but I don't think that will matter in this case.[/FONT]