When to pay the charities

theoretica

Cazzaloulou68 said:

Thanks for that so in simple terms:
1. Collect all monies inc house sale
2. Pay off any debts to estate
3. Pay the rest of IHT…(have already paid some before probate gained) work out CGT…less estate agents, solicitor fees, allowances pay that
4. What’s left…deduct 5pc each for two charities-pay them including a estate account statement
5. last 90pc is split between the two beneficiaries 
am i correct, or am i missing something?

Probably a slightly more complicated calculation - because the charities'10% will not have had IHT paid on it and so probably they expect their share will be more than 10% of what's left because it had less tax on it. I am not sure if there is a way they can get their share without CGT.  If they are a large charity they probably have someone who knows what can happen about CGT.

Cazzaloulou68

theoretica said:

Cazzaloulou68 said:

Thanks for that so in simple terms:
1. Collect all monies inc house sale
2. Pay off any debts to estate
3. Pay the rest of IHT…(have already paid some before probate gained) work out CGT…less estate agents, solicitor fees, allowances pay that
4. What’s left…deduct 5pc each for two charities-pay them including a estate account statement
5. last 90pc is split between the two beneficiaries 
am i correct, or am i missing something?

Probably a slightly more complicated calculation - because the charities'10% will not have had IHT paid on it and so probably they expect their share will be more than 10% of what's left because it had less tax on it. I am not sure if there is a way they can get their share without CGT.  If they are a large charity they probably have someone who knows what can happen about CGT.

This is where I’m getting confused i think.  In my head, i cant work out when i take the charities money. I don’t want to get it wrong….if someone has done this before and can give me some pointers on what figures i need to work out id be very great-full. We’re not talking millions here, but I’m aware that in my role as executor i need to get it right!

Cazzaloulou68

GDB2222 said:

I am sure the answer is yes, but you allowed for the 36% IHT rate?

I have yes-thanks

Cazzaloulou68

Also ..the only beneficiaries are myself and sibling and the two charities. If we decided not to sell the property, or the sale fell through the property would transfer into our names. I would pay the charities their money based on the probate values. So if we then sold in say 3 years time, do we then still have to up the charities share?