Savings worth more than Probate valuation when redeemed - subject to CGT?

ljayljay

itm2 said:

Re. the Deed of Appropriation: I've just had the response below from my solicitor. They note that the sale would "still proceed in your sole name as Executor" (I am the only Executor named on the Grant of Probate, although my sister was also an Executor)..

Would this in any way affect our ability to use both of our CGT allowances against the increase in the property value? (c.£39k higher than the RICS Probate valuation).

"...the Deed will provide that you and your sister are beneficially entitled to the

funds, but the sale will still proceed in your sole name as Executor, and we will still need

to transfer the funds into ideally an executors account or failing which a personal account

in your sole name as we would for any executor. We are unable to divide the funds.”

For your sister to sign and receive her own share of the funds you and your sister

would have to complete a formal transfer of the ownership of the property into your joint

names and either register that at the Land Registry or expect your purchaser to do that

when they submit their own application following completion."

Myself & siblings are joint executors & beneficiaries. Solicitor requested grant of probate & certified copy of will in order to draw up deed. On the grant I am also the only named executor with powers reserved for my siblings. The will shows all the named executors so don't see why it should be a problem as they haven't renounced their executor status. I spoke to HMRC & specifically detailed situation & they seemed OK with this. No doubt I will find out eventually when completing self assessment for 22/23. If requested I will supply deed to HMRC & see what happens.

itm2

ljayljay said:

itm2 said:

Re. the Deed of Appropriation: I've just had the response below from my solicitor. They note that the sale would "still proceed in your sole name as Executor" (I am the only Executor named on the Grant of Probate, although my sister was also an Executor)..

Would this in any way affect our ability to use both of our CGT allowances against the increase in the property value? (c.£39k higher than the RICS Probate valuation).

"...the Deed will provide that you and your sister are beneficially entitled to the

funds, but the sale will still proceed in your sole name as Executor, and we will still need

to transfer the funds into ideally an executors account or failing which a personal account

in your sole name as we would for any executor. We are unable to divide the funds.”

For your sister to sign and receive her own share of the funds you and your sister

would have to complete a formal transfer of the ownership of the property into your joint

names and either register that at the Land Registry or expect your purchaser to do that

when they submit their own application following completion."

Myself & siblings are joint executors & beneficiaries. Solicitor requested grant of probate & certified copy of will in order to draw up deed. On the grant I am also the only named executor with powers reserved for my siblings. The will shows all the named executors so don't see why it should be a problem as they haven't renounced their executor status. I spoke to HMRC & specifically detailed situation & they seemed OK with this. No doubt I will find out eventually when completing self assessment for 22/23. If requested I will supply deed to HMRC & see what happens.

Thanks for the feedback. Presumably you'll need to declare it within 60 days of the property sale, so will find out sooner?

ljayljay

itm2 said:

ljayljay said:

itm2 said:

Re. the Deed of Appropriation: I've just had the response below from my solicitor. They note that the sale would "still proceed in your sole name as Executor" (I am the only Executor named on the Grant of Probate, although my sister was also an Executor)..

Would this in any way affect our ability to use both of our CGT allowances against the increase in the property value? (c.£39k higher than the RICS Probate valuation).

"...the Deed will provide that you and your sister are beneficially entitled to the

funds, but the sale will still proceed in your sole name as Executor, and we will still need

to transfer the funds into ideally an executors account or failing which a personal account

in your sole name as we would for any executor. We are unable to divide the funds.”

For your sister to sign and receive her own share of the funds you and your sister

would have to complete a formal transfer of the ownership of the property into your joint

names and either register that at the Land Registry or expect your purchaser to do that

when they submit their own application following completion."

Myself & siblings are joint executors & beneficiaries. Solicitor requested grant of probate & certified copy of will in order to draw up deed. On the grant I am also the only named executor with powers reserved for my siblings. The will shows all the named executors so don't see why it should be a problem as they haven't renounced their executor status. I spoke to HMRC & specifically detailed situation & they seemed OK with this. No doubt I will find out eventually when completing self assessment for 22/23. If requested I will supply deed to HMRC & see what happens.

Thanks for the feedback. Presumably you'll need to declare it within 60 days of the property sale, so will find out sooner?

Hmm, well not so sure as advised if below CGT allowance no need to declare within the 60 days & I guess that is the whole point of doing the deed. However, I was advised that there was a requirement to do a self assessment for the 22/23 TY that would then include the house Sale. Must admit pretty confusing so I'll will double check again on completion. At the end of the day doing Land Registry would probably cost as much & possibly cause delays so thought nothing really lost doing deed of appropriation. If HMRC require CGT to be paid so be it.  

itm2

Another question has occurred to me: can solicitors fees be deducted from the taxable gains for CGT purposes, as described here?
https://www.homesellingexpert.co.uk/guides/capital-gains-tax-on-inherited-property

One the one hand, my sister and I have inherited the property as part of my late mother's estate. On the other hand, it's the estate that is selling the property, not myself and my sister.
???