Probate executor: splitting share proceeds; sell then split or split then sell?

Climberjohn

Simple question but hard to explain clearly!
I'm executor for my late mother's estate and have finally got probate.
There are three equal beneficiaries in the will; all want cash (i.e. shares sold) not equity.
Because probate is a PITA and takes ages, there's been a capital gain since date of death.  The gain is above the allowance.  The three beneficiaries pay different income tax rates, and so different CGT rates.

Can I as executor sell the lot, give them the cash and then they declare their share of the sale and gain as part of their self-assessment?
Or will that end up with all the CGT being assessed against me as seller and so I'd have to transfer a third of the holding to each of them and they sell individually?
The latter is a ballache of paperwork and more expensive, so I'd like to do the former but the potential difference in tax is material.

Hoenir

CGT on asset liquidation is a liability of the Estate not the beneficiaries. 

Climberjohn

The estate has been valued at the date of death and the equities held as scrip.  So now the beneficiaries own 1/3 of each asset.  The reference acquisition value is the quarter up value on date of death; there's now a gain.  Should I give the benficiaries the scrip and let them use their CGT allowance and prevailing rate of tax, or sell en bloc?  I am one of the three btw!

NoMore

Wrong board, better asked here Deaths, funerals & probate — MoneySavingExpert Forum

Climberjohn

Thanks - I've recreated there.  Apologies.
How do I delete this one?!

Climberjohn

Simple question but hard to explain clearly!
I'm executor for my late mother's estate and have finally got probate.
There are three equal beneficiaries in the will; all want cash (i.e. shares sold) not equity.
Because probate is a PITA and takes ages, there's been a capital gain since date of death.  The gain is above the allowance.  The three beneficiaries pay different income tax rates, and so different CGT rates.

Can I as executor sell the lot, give them the cash and then they declare their share of the sale and gain as part of their self-assessment?
Or will that end up with all the CGT being assessed against me as seller and so I'd have to transfer a third of the holding to each of them and they sell individually?
The latter is a ballache of paperwork and more expensive, so I'd like to do the former but the potential difference in tax is material.

Alphatauri

Can’t you sell them as executor and the estate pays the CGT then you split the remainder? 

p00hsticks

Alphatauri said:

Can’t you sell them as executor and the estate pays the CGT then you split the remainder? 

That was going to be my suggestion too - the estate (via the executor) sells and pays the CGT.
How are the shares held ?

p00hsticks

Climberjohn said:

Thanks - I've recreated there.  Apologies.
How do I delete this one?!

I've asked the forum team to merge the two threads as you've had replies in both....

Climberjohn

Hi
Thanks for the replies.  Yes, I could sell and split...but the estate pays CGT at 20% and if split there is 3 lots of allowances and two people at 18%...

poppystar

If they are asking for cash then the estate sells and pays the tax. If they want to use their own allowances then they must accept the shares and deal with it themselves. No sense in making it all more of a PITA for yourself🙂