My wife recently sold a property that she inherited from her mum's estate for which she acted as the executor.
When issuing the contract for sale her solicitor showed the seller as the personal representative of her late mum's estate (ie my wife) as opposed to my wife specifically.
This now looks like additional taxes will need to be paid as the estate will owe CGT on the increase in value of the property and my wife will now owe CAT on the increased value of the estate also, whereas if the contract for sale had been in my wife's name she would have paid CAT on the acquisition value of the property and CGT on the subsequent increase in the property value, thus avoiding a double whammy.
My wife wasn't afforded a choice in who the seller on the contract should have been by her solicitor and we are wondering what options are open to use now to either avoid the incursion of this additional unnecessary extra tax or to seek compensation for the lack of professional advise that should have been forthcoming when the contract was being drawn up.
When issuing the contract for sale her solicitor showed the seller as the personal representative of her late mum's estate (ie my wife) as opposed to my wife specifically.
This now looks like additional taxes will need to be paid as the estate will owe CGT on the increase in value of the property and my wife will now owe CAT on the increased value of the estate also, whereas if the contract for sale had been in my wife's name she would have paid CAT on the acquisition value of the property and CGT on the subsequent increase in the property value, thus avoiding a double whammy.
My wife wasn't afforded a choice in who the seller on the contract should have been by her solicitor and we are wondering what options are open to use now to either avoid the incursion of this additional unnecessary extra tax or to seek compensation for the lack of professional advise that should have been forthcoming when the contract was being drawn up.