Sale of Deceased's House by Beneficiaries or by the Executors?

RichardPM

Hoping somebody has been through this!
My mother passed recently and left her estate equally to her three offspring. The estate includes a residential property - registered at Land Registry ("LR"), no mortgage.
I am trying to understand what to do and in what order to ensure that the capital gain on selling the house (the difference between the potential sale price and the house valuation in the IHT400) is treated as a capital gain (a third each) for each of the 3 beneficiaries so that they are liable for the Capital Gains Tax ("CGT!), whatever that works out to be depending on their individual circumstances, rather than a capital gain on which the Estate has to pay CGT
My parents house was owned as tenants in common (with a "Restriction A").
My father passed leaving everything to my mother in his will.
Grant of Probate ("GoP") was obtained for my father.
LR were notified of my father's death but nothing further was done with LR
My mother passed away.
LR have not been notified of her death.
GoP has been granted for my mother's estate.
We (the beneficiaries of my mother's will and the two executors, also beneficiaries) now wish to sell the house.
I want to make sure that the capital gain on selling the house is treated as a capital gain by each of the beneficiaries - essentially a third each - with each beneficiary being liable for whatever CGT rather than the capital gain being treated as a gain by the estate and the estate having to pay the CGT.

Can this be achieved by
a) the executors selling the house and somehow the beneficiaries being alloicated the gain; or
b) does the house have to be transferred into the names of the beneficiaries first (presumably completing various LR forms & paying LR fees) and then the house sold by the three beneficiaries; or
c) something else!

Thanks in hope of any help!

Keep_pedalling

Not enough info, how much is the house worth? What is the total value of her estate? Do any of the beneficiaries not already own their own home.

If the death is recent and  you did not under value the property then there should be no CG to worry about.

Keep_pedalling

RichardPM said:

Hoping somebody has been through this!
My mother passed recently and left her estate equally to her three offspring. The estate includes a residential property - registered at Land Registry ("LR"), no mortgage.
I am trying to understand what to do and in what order to ensure that the capital gain on selling the house (the difference between the potential sale price and the house valuation in the IHT400) is treated as a capital gain (a third each) for each of the 3 beneficiaries so that they are liable for the Capital Gains Tax ("CGT!), whatever that works out to be depending on their individual circumstances, rather than a capital gain on which the Estate has to pay CGT
My parents house was owned as tenants in common (with a "Restriction A").
My father passed leaving everything to my mother in his will.
Grant of Probate ("GoP") was obtained for my father.
LR were notified of my father's death but nothing further was done with LR
My mother passed away.
LR have not been notified of her death.
GoP has been granted for my mother's estate.
We (the beneficiaries of my mother's will and the two executors, also beneficiaries) now wish to sell the house.
I want to make sure that the capital gain on selling the house is treated as a capital gain by each of the beneficiaries - essentially a third each - with each beneficiary being liable for whatever CGT rather than the capital gain being treated as a gain by the estate and the estate having to pay the CGT.

Can this be achieved by
a) the executors selling the house and somehow the beneficiaries being alloicated the gain; or
b) does the house have to be transferred into the names of the beneficiaries first (presumably completing various LR forms & paying LR fees) and then the house sold by the three beneficiaries; or
c) something else!

Thanks in hope of any help!

I did post a response on the other board, but you can edit your original test simply to say duplicate thread, just click on the cog symbol above the post.

In order to answer the question we need a bit more info. Did you under value the property on the IHT return? If not then you should not be a CG issue. Are any beneficiaries not already home owners?

How big is the estate, and what is the value of the house?

RichardPM

THE ORIGINAL POST IS A DUPLICATE OF WHAT CAN BE FOUND IN "DEATHS, FUNERALS AND PROBATE SO PLEASE DO NOT REPLY HERE.
SORRY _ I CANNOT FIND A WAY TO DELETE THE POST ON THIS FORUM!

Keep-Pedalling ... Thanks for taking the time to reply.
I must need to go to specsavers - I cannot see a cog symbol above my original post.
I am going to try to just stick to the post in Deaths, Funeral;s and Probate forum.
Thanks

Jim80

RichardPM said:

THE ORIGINAL POST IS A DUPLICATE OF WHAT CAN BE FOUND IN "DEATHS, FUNERALS AND PROBATE SO PLEASE DO NOT REPLY HERE.
SORRY _ I CANNOT FIND A WAY TO DELETE THE POST ON THIS FORUM!

Keep-Pedalling ... Thanks for taking the time to reply.
I must need to go to specsavers - I cannot see a cog symbol above my original post.
I am going to try to just stick to the post in Deaths, Funeral;s and Probate forum.
Thanks

I don't think you can edit your first few posts, I couldn't as a new member.