Not applicable

[Deleted User]

Not applicable

RAS

There will be no IHT to pay regardless of whether it's £400k or less. 

As a residuary beneficiary, you should expect an estate account when distribution takes place. That's when to ask the executors to explain.

bobster2

I think the more interesting specific question is why an apartment marketed for £240k sold for just £195k.

There could be many legitimate reasons (e.g. significantly over-priced). But did it sell on the open-market? Or to someone connected with the estate / executors in some way?

Keep_pedalling

bobster2 said:

I think the more interesting specific question is why an apartment marketed for £240k sold for just £195k.

There could be many legitimate reasons (e.g. significantly over-priced). But did it sell on the open-market? Or to someone connected with the estate / executors in some way?

Sounds like a retirement apartment which are notoriously difficult to sell. If that is the case just be grateful it has been sold and the high ongoing charges associated with it are no longer being racked up. 

p00hsticks

Advice often given on here when dealing with estate property that is going  to be sold is that for probate purposes it is sensible to err on the high side of valuations, to avoid the estate then having to pay Capital Gains Tax if it sells for more than the value declared at probate. 

The uplift quoted here does seem excessive for that to be the explanation though...

Keep_pedalling

As you had financial POA, do you know where the £90k of debt came from? 

Keep_pedalling

These places are a nightmare to sell but the over estimation for probate will have no negative impact as far as IHT or CGT is concerned. 

RAS

You won't get to know until the estate accounts are issued.

Keep_pedalling

[Deleted User] said:

Keep_pedalling said:

These places are a nightmare to sell but the over estimation for probate will have no negative impact as far as IHT or CGT is concerned. 

Yes, they are, which is why I would've snapped the hand off the woman who . But what I don't understand is that the apartment was on the market for £240K at the time probate was applied for, with a best offer of £212K, debts of £90K and no other assets, so surely the estate should have been valued at £150K or thereabouts. Where did the extra £250K come from? 

Sorry, I did not read your opening post correctly, I was only looking at the house valuation vs sale price not the overall valuation that does seem rather bonkers. Are the executors professionals?