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Distribution of estate between siblings
fuzzything
Posts: 124 Forumite
My sister and I are ready to distribute our mothers estate, which was left in her will equally shared between us. It consists of a property and money, which comes to more than the value of the property.
My sister and I would like her to receive the whole of the property by transfer from the estate along with her receiving the additional money required to give her half the total value of the estate, and for me to receive my half of the estate only as money.
We had a RICS property valuation for probate as at the date of death 9 January 2021, and used that on inheritance tax form. The amount has been accepted by HMRC, and we our now at the point of being able to distribute the estate.
Can my sister and I decide between us that the value of the property has gone up by say 3% since January and take that into account when sharing out the money between us. Would there be Capital Gains tax or stamp duty due? I would have thought not as no one is buying or selling.
I already own a property, but my sister does not.
My sister and I would like her to receive the whole of the property by transfer from the estate along with her receiving the additional money required to give her half the total value of the estate, and for me to receive my half of the estate only as money.
We had a RICS property valuation for probate as at the date of death 9 January 2021, and used that on inheritance tax form. The amount has been accepted by HMRC, and we our now at the point of being able to distribute the estate.
Can my sister and I decide between us that the value of the property has gone up by say 3% since January and take that into account when sharing out the money between us. Would there be Capital Gains tax or stamp duty due? I would have thought not as no one is buying or selling.
I already own a property, but my sister does not.
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Comments
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If you are both in agreement then yes you can split the assets as you wish. There will be no SD or CGT, although if she is not planning to live in the house HMRC would expect any CG on a future sale to be based on the probate value not what are are considering as the current value.
To be fair to your sister you should take into account the savings you are making in avoiding selling costs for the house as well as any increase in value.1 -
Given that they are not even considering selling it, then they're not 'saving' anything.Keep_pedalling said:
To be fair to your sister you should take into account the savings you are making in avoiding selling costs for the house as well as any increase in value.
If anything, the sister will be saving the buying fees if she were buying any other house so I don't think it's the OP who needs to be 'fair' to their sister in this situation.
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Hi,
The fairness is inherent in the distribution of the estate. There won't be any selling fees so the estate is bigger overall and both beneficiaries receive more.
No further adjustment needed.1
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