Probate sale and beneficiaries

flopsy1973

Thanks been trying to find out more on this but getting nowhere far. Solicitors involved are no help. 
Say the property had probate value of 145 k and is sold at 185k so I am administrator and  other beneficiaries who pays the CGT or the Estate liable

greatcrested

Basically if the Estate sells the property the Estate is liable for CGT on the increase in value.

I believe there is a way to have the Probate value (& hence any IHT) amended provided the time-lag between death and sale is not excessive.

There is also a way for the Administrator to sell as Trustee for the Beneficiaries, which means the Beneficiaries each pay their share of the CGT (and each can utilise their annual CGT allowance) - someone here may know the procedure, or seek legal advice.

flopsy1973

kngreatcrested said:

Basically if the Estate sells the property the Estate is liable for CGT on the increase in value.

I believe there is a way to have the Probate value (& hence any IHT) amended provided the time-lag between death and sale is not excessive.

There is also a way for the Administrator to sell as Trustee for the Beneficiaries, which means the Beneficiaries each pay their share of the CGT (and each can utilise their annual CGT allowance) - someone here may know the procedure, or seek legal advice.

Does anyone know more about this ? 

flopsy1973

Any one know more on this as my solicitor is no help and I spoke to accountant who said that it should be able to be sold so that we can utilise each of our CGT allowance 

p00hsticks

flopsy1973 said:

Any one know more on this as my solicitor is no help and I spoke to accountant who said that it should be able to be sold so that we can utilise each of our CGT allowance 

I'm not an expert but my understanding is that if the house has been left to more than one beneficiary then if the property is transferred into their names prior to exchange (rather than being left in the name of the deceased) then they can each use their personal CGT allowance. However there are potential downsides to this - if any of the beneficiaries hasn't owned property before they'd lose their first time buyer status if it's put into their name, even if it's sold immediately afterwards.

greatcrested

p00hsticks said:

flopsy1973 said:

Any one know more on this as my solicitor is no help and I spoke to accountant who said that it should be able to be sold so that we can utilise each of our CGT allowance 

I'm not an expert but my understanding is that if the house has been left to more than one beneficiary then if the property is transferred into their names prior to exchange (rather than being left in the name of the deceased) then they can each use their personal CGT allowance. However there are potential downsides to this - if any of the beneficiaries hasn't owned property before they'd lose their first time buyer status if it's put into their name, even if it's sold immediately afterwards.

The reason I mentioned trustees is that (I believe) it means the property does not need to be transferred into the Beneficies names. Property is transferred direct from deceased's name to buyer's name, but CGT is paid by the Beneficiaries.

Ah! Try a 'Deed of Assent'.

getmore4less

appropriation is what you are looking for as said already
here is a description(again).
https://www.co-oplegalservices.co.uk/media-centre/articles-may-aug-2018/what-is-a-deed-of-appropriation