Probate granted will I pay inheritance tax?

HelenSally

My auntie died in June 2018, the executors were the solicitors and probate was granted as the estate was valued under the threshold of £325000

My aunt was not married and had no children.

My aunt left me a 25% share of the estate. Along with my three other nieces, all having 25% share.

After disputes with other family members( all settled with no cases) , Time went on, finding a buyer , losing a buyer, refurbishing the property, finding a new buyer, the estate was revalued  3 years later , but as prices had increased and we had refurbish the bungalow with the land included, this estate was then valued and sold for £1.25 million.The buyer  is still in the process of purchase, and hopefully it will complete January/ June  2025, so will  be more than 7 years  Since my aunt passed away, will I be liable for inheritance tax? As probate previously granted? 

Or will I be liable for  capital gains tax?
any help much appreciated as solicitor unhelpful and the bill is heading for £100,000 

bobster2

If the original valuation of the property for the date of death was accurate - and this left the estate below £325k then no IHT.

But the estate will certainly need to pay CGT.

However, I don't see how a property valued < £325k in 2018 could be worth £1.25 million now - unless you've knocked down the structure and built something huge in its place.

How was that initial valuation in 2018 done?

HelenSally

The original valuation was done by a Professional  agent which the Executors ( solicitors) instructed and paid for . 

At the time it was  the rundown bungalow and 1 acre of field, where the horses were kept for grazing  but since then we renovated the bungalow and asked if the land could be a property opportunity and a developer since the valuation (4 years later) approached the solicitor to buy the bungalow and Land for that price. Providing that they can get planning permission, hence completion will be, June 25 

msb1234

each each beneficiary will pay CGT, and how much they pay will depend on their circumstances. You’re looking at maybe £250000 in total.

bobster2

msb1234 said:

each each beneficiary will pay CGT, and how much they pay will depend on their circumstances. You’re looking at maybe £250000 in total.

If the estate has not been distrbuted (i.e. ownership transferred to beneficiaries) surely it would be the estate that pays CGT?

Marcon

HelenSally said:

My auntie died in June 2018, the executors were the solicitors and probate was granted as the estate was valued under the threshold of £325000

My aunt was not married and had no children.

My aunt left me a 25% share of the estate. Along with my three other nieces, all having 25% share.

After disputes with other family members( all settled with no cases) , Time went on, finding a buyer , losing a buyer, refurbishing the property, finding a new buyer, the estate was revalued  3 years later , but as prices had increased and we had refurbish the bungalow with the land included, this estate was then valued and sold for £1.25 million.The buyer  is still in the process of purchase, and hopefully it will complete January/ June  2025, so will  be more than 7 years  Since my aunt passed away, will I be liable for inheritance tax? As probate previously granted? 

Or will I be liable for  capital gains tax?
any help much appreciated as solicitor unhelpful and the bill is heading for £100,000 

It's unimpressive that the solicitor is 'unhelpful', especially with a legal bill heading north at what appears to be a fairly steady rate!

I don't understand why a seasoned professional can't answer what are, frankly, pretty simple and basic questions for someone with the requisite knowledge and training. Have you actually asked your questions in a straightforward, 'bullet point' manner, which would give them minimal wriggle room? If you have, and they still haven't helped, I'd complain to the firm (the complaints procedure should be on their website; if not, ask them for details). You shouldn't be paying for inadequate or shoddy advice.

On the other hand, if your questions have perhaps not been as articulate as they might, think about having another go at asking. 

I wouldn't place too much reliance on any answers here, simply because there isn't enough information in your question to enable properly informed responses.

user1977

HelenSally said:

The original valuation was done by a Professional  agent which the Executors ( solicitors) instructed and paid for . 

At the time it was  the rundown bungalow and 1 acre of field, where the horses were kept for grazing  but since then we renovated the bungalow and asked if the land could be a property opportunity and a developer since the valuation (4 years later) approached the solicitor to buy the bungalow and Land for that price. Providing that they can get planning permission, hence completion will be, June 25 

Right, so it hasn't "sold for £1.25m", and might never be worth that.