Probate sale and beneficiaries

flopsy1973

Hi I am selling my parents house after they died 4 yrs ago. There is no will and I applied for probable and have dealt with estate. The house proceeds are  is to go between my brother and me but my parents also wanted my son to have 50k. He has not had that money yet and it could be paid out of house or or other assets they had  which is going to be less complicated. ? also it is not the full 50k anymore since I have given him advances on that. 
Also the price we got is around 25k more than valuation on probate application so how do we stand on CGT since the money is going to be split? Also all the expenses regarding funeral bills upkeep of house have been paid by myself until we sorted the house out so I can deduct those also ?
Many thanks

AdrianC

I think you'd be better off posting here...
https://forums.moneysavingexpert.com/categories/deaths-funerals-probate

wilfred30

If there is no Will, your son is not legally entitled to the £50k.  

Unless your brother is happy to lose £25k of his inheritance, maybe you should give it to your son out of your half of the inheritance.

MoneySeeker1

As there is no Will, then it has to be split fairly - ie 50% to your brother and 50% to you - in accordance with the laws of intestacy.

If you want your son to have some, then you will have to give it to him from your 50% share.

greatcrested

As Administrator you will need to

* pay any CGT due on the increase in value between the declared Probate value and the sale price, before you can distribute the Estate.

* pay the funeral and property running costs out of the Estate assets before distribution. If you have already paid these from your own funds, the Estate should re-imburse you before the remainder is distributed.

* distribute the Estate's remaining assets according to the laws of intestacy. That means you and your brother 50% each (assuming Eng/Wales). See here.

* of course, if you and/or your brother choose to give your son a gift, of whatever amount, that is up to each of you.

* any gift you give your son over £3K would remain in your (ad/or brother's) Estate for Inheritance Tax if you were to die within 7 years.

Have you made a will yourself?

Grumpy_chap

Don't forget that any IHT need to be paid before distribution

davidmcn

Grumpy_chap said:

Don't forget that any IHT need to be paid before distribution

It would have had to have been paid before they got probate. 

Grumpy_chap

Ok, thanks.  I was not aware that was how it works.

greatcrested

Grumpy_chap said:

Ok, thanks.  I was not aware that was how it works.

One of the reasons Probate can be held up. Hence the threads we see here from buyers trying to buy Probate properties and expecting Probate to take a couple of weeks.....

Mickey666

MoneySeeker1 said:

As there is no Will, then it has to be split fairly - ie 50% to your brother and 50% to you - in accordance with the laws of intestacy.

If you want your son to have some, then you will have to give it to him from your 50% share.

why can't the rules of intestacy be varied, in the same that a will can be varied, as long as all the legal beneficiaries agree?

greatcrested

Beac

Mickey666 said:

MoneySeeker1 said:

As there is no Will, then it has to be split fairly - ie 50% to your brother and 50% to you - in accordance with the laws of intestacy.

If you want your son to have some, then you will have to give it to him from your 50% share.

why can't the rules of intestacy be varied, in the same that a will can be varied, as long as all the legal beneficiaries agree?

Beacuse the rules of intestacy are laid down by statute rather than by a will, which is a personal document. In the same way that people can vary the terms of a contract, but cannot vary the terms of a law created by statute.