House valuation and renounce executor questions

Kazieme

Can I please get a view from the experts here on house valuation declaration for confirmation. 

I have sought 3 house valuations, which are broadly similar, but in my view, a bit conservative. While the housing market is slightly suppressed at the moment, we will be selling a house in a high demand catchment area.  So, I am inclined to increase the valuation for probate purposes, with the reasoning that it is better to over estimate than under estimate.  Is this wrong - what are the consequences of  the house selling for more than declared valuation - I am assuming we would have to subsequently declare this, but not necessarily report if under? 

 The estate is within IHT limits. 

Many thanks for any advice. 

Keep_pedalling

If it does not take you into IHT territory I would over estimate a bit to avoid a CGT liability down the line.

Based on your thread title you seem to have missed off a second question, but it seems like you are too far advanced in the process to renounce now.

Sarahspangles

We got three EAs to value the property, one of them supplied a really comprehensive justification for their estimate based on recent sales, so we went with the higher figure of their range.  It’s now under offer at this value, so it’s good we used it in our calculations.  One consideration was that, if at any point we agreed to use a higher valuation figure, one of the executors would insist on trying to achieve that.  Since the property needs regular checks and is at some distance, and the market is falling, a prompt sale seemed in everyone’s interests.

buddy9

On the basis of the post on your other thread, the estate is well away from IHT territory. So, on this basis, the consequence of selling above the declared value could be nil for IHT, but could see a capital gains tax implication. There would likely be no consequence of selling for less than the stated value. 

So do not be conservative.

Kazieme

Thanks all for comments. 

Kazieme

Keep_pedalling said:

If it does not take you into IHT territory I would over estimate a bit to avoid a CGT liability down the line.

Based on your thread title you seem to have missed off a second question, but it seems like you are too far advanced in the process to renounce now.

Thanks Keep pedalling, my executor question was going to be can I use the form PA16 to renounce executor role in Scotland?  

buddy9

If you are dealing with Confirmation in Scotland, form PA16 is not relevant.

How many executors are there?
Are the executors appointed by a will?

Kazieme

There are 2 executors, appointed in will - one of whom lives in England and therefore thought it would be easier to renounce due to distance difficulties etc

Kazieme

Not sure if I’m posting this in right place, apologies if I’m not..

buddy9

Given that there are two executors, one of the executors can relinquish the appointment by one of the methods below:

1. An executor nominate can decline the appointment. They would sign and date a ‘declinature’ and this would be referenced in the Confirmation declaration and it would be submitted along with the C1 application.

2. An executor nominate who has accepted the appointment can then resign (where there is at least one other executor acting). A resignation would be treated as above - referenced in the Confirmation declaration and submitted with the C1 application.

One issue to check is that there is no unusual condition in the will that might be problematic for a sole executor.

Kazieme

Most helpful and many thanks.