Probate sale and beneficiaries

flopsy1973

Where can I get the probate valuation I gave for the house I will need this for the any CGT liability. ? 

Thrugelmir

Here
https://www.gov.uk/search-will-probate

Slithery

flopsy1973 said:

Where can I get the probate valuation I gave for the house? 

From the paperwork you submitted as executor.

flopsy1973

getmore4less said:

 flopsy1973 said:

DiamondLil said:

@flopsy1973 - my mother's house sold for £30000 more than the probate valuation. HMRC informed us that, because probate had been settled, this £30000 would become a Capital Gains Tax liability on the beneficiaries. Which made any tax due the responsibilty of each individual when filing tax returns. In our cases, the liability was nil because the £30000 was divided by the number of beneficiaries which brought the individual liabilities well below the annual CGT alowance per individual.

When is probate considered finished surely until the assets of estate have been sold and distributed it carries on ?  
I have not taken any of expenses out either yet after that it will  not be much of gain
Where do I get the probate figure from ? 

There is a point in estate administration (After the grant and before final distribution)where the residual become a known quantity
the beneficiaries can use their CGT allowances, this can be before the house is sold and without the property going into their names, you need to check the rules for when this is 

Does anyone know more on this had a look online but nothing clear. Me and my brother will share any CGT liability when I receive the money ? I can deduct all running expenses of house from this .? 

getmore4less

You can't deduct running costs for the CGT assessment, only cost directly connected to the sale.

Grumpy_chap

So, the house will sell for £185k.  Assume therefore that OP and brother will get £100k each total from estate, or thereabouts.

Is OP's brother accepting he is to give a quarter of his inheritance to OP's son?

I would not give this sort of amount to my niece's and nephews.

greatcrested

flopsy1973 said:

getmore4less said:

 flopsy1973 said:

DiamondLil said:

@flopsy1973 - my mother's house sold for £30000 more than the probate valuation. HMRC informed us that, because probate had been settled, this £30000 would become a Capital Gains Tax liability on the beneficiaries. Which made any tax due the responsibilty of each individual when filing tax returns. In our cases, the liability was nil because the £30000 was divided by the number of beneficiaries which brought the individual liabilities well below the annual CGT alowance per individual.

When is probate considered finished surely until the assets of estate have been sold and distributed it carries on ?  
I have not taken any of expenses out either yet after that it will  not be much of gain
Where do I get the probate figure from ? 

There is a point in estate administration (After the grant and before final distribution)where the residual become a known quantity
the beneficiaries can use their CGT allowances, this can be before the house is sold and without the property going into their names, you need to check the rules for when this is 

Does anyone know more on this had a look online but nothing clear. Me and my brother will share any CGT liability when I receive the money ? I can deduct all running expenses of house from this .? 

I believe the executors have to create a trust in the names of the two Beneficiaries. The executors then sell the property as trustees on behalf of the Beneficiaries, who then each pay their share (50% each) of the CGT, using their individual annual CGT allowances (and sharing the sellig costs).

I'm not exactly sure of the process but is something like that. Suggest you research indepth or get proper advice.

flopsy1973

Hi
Been reading more about this,  my brother has been living in the house most of the time and does not own another home but obviously the property is still in my parents name so then are we going to be liable to any CGT that may or may not be due?

greatcrested

As explained, the Estate is responsible for any CGT that is due on the gain in value between Probate Vlue and sale price.

Your brother's residency has no bearing on this, though as Asministrators of the Estate you have a responsibility to manage the Estate's assets responsibly and in the interests of the Beneficiaries.

So you should have been charging your brother rent (as well as complying with tenancy regulations), and the Estate should declare that rent for Income Tax purposes.

getmore4less

greatcrested said:

flopsy1973 said:

getmore4less said:

 flopsy1973 said:

DiamondLil said:

@flopsy1973 - my mother's house sold for £30000 more than the probate valuation. HMRC informed us that, because probate had been settled, this £30000 would become a Capital Gains Tax liability on the beneficiaries. Which made any tax due the responsibilty of each individual when filing tax returns. In our cases, the liability was nil because the £30000 was divided by the number of beneficiaries which brought the individual liabilities well below the annual CGT alowance per individual.

When is probate considered finished surely until the assets of estate have been sold and distributed it carries on ?  
I have not taken any of expenses out either yet after that it will  not be much of gain
Where do I get the probate figure from ? 

There is a point in estate administration (After the grant and before final distribution)where the residual become a known quantity
the beneficiaries can use their CGT allowances, this can be before the house is sold and without the property going into their names, you need to check the rules for when this is 

Does anyone know more on this had a look online but nothing clear. Me and my brother will share any CGT liability when I receive the money ? I can deduct all running expenses of house from this .? 

I believe the executors have to create a trust in the names of the two Beneficiaries. The executors then sell the property as trustees on behalf of the Beneficiaries, who then each pay their share (50% each) of the CGT, using their individual annual CGT allowances (and sharing the sellig costs).

I'm not exactly sure of the process but is something like that. Suggest you research indepth or get proper advice.

As long as the administration is far enough to appropriate the property to the beneficiaries it can be sold from will trust by the executors with the beneficiary being responsible for any CGT.

Example. 
https://www.co-oplegalservices.co.uk/media-centre/articles-may-aug-2018/what-is-a-deed-of-appropriation/