Confused.com on IHT and CGT

darrend2812

My grandmother passed away in 2019 and through her will, placed a property in trust giving my aunt the right to reside in it.  My Aunt lived in the property all her life as her main residence, but she has now passed away (May2023). Im in need of advice as I’m seeking to sell the property, and would like advice on the CGT and IHT implications. 

Property’s valued at 500k and proceedings are being split across 4 beneficiaries 

sammyjammy

Was Grandmother married?  What was the value of the house when she died and what other assets did she have?

darrend2812

@sammyjammy - grandma was married but my grandfather passed in 1993. 

Probate value of 405k

Keep_pedalling

Immediate post death interest trusts are not so straight forward when the person given the life interest is not a spouse. As far as IHT is concerned the house forms part of your aunt’s estate so IHT will be due unless she was a widow with transferable NRB available.

I don’t think CGT comes into it but I think whoever is administering your aunts estate and the trust’s trustees should take professional advice to avoid a what could be an expensive mistake.