huge inheritance tax dilemma.

[philben]

I am executor of a will. I have been left two properties five months ago in a relatives will. There is some monies also. The amount will come to over the tax free threshold for inheritance tax. I am worried about this as i am unsure about how to meet the cost which will be significant. I was hoping to realise some of the assets but there is a problem. I cant sell one of the properties as i have it in a 'tenant in common' agreement. The other property holds a right of residence for an intellectually disable relative attached to it. I am running out of time and i am trying to do a personal probate application. I have consulted a solicitor who has told me that i am liable for a huge inheritance tax bill and believes that i would be ill advised to continue to process the probate application personally given the complications of the will.

Can I and if so how can I dispose of the right of residence in order to sell the property.
Should I continue with a personal probate application.
What will I do about the inheritance tax? is it payable from the date of the relatives death or is this negotiable?.
The property that I hold in a tenants in common agreement is in disrepair and an elderly relative resides in it. As I am not benefiting from inheriting it can I delay having to pay inheritance tax on it.

 

[Brendan Burgess]

I think in this case, the solicitor's advice is good. Personal probate should be done only where it is straightforward.

The other property holds a right of residence for an intellectually disable relative attached to it.

This would reduce the value of the property, but you should still be able to sell it.

Brendan

 

[Vanilla]

I'm not sure in the circumstances that it would be straightforward obtaining consent to sell either property. One has a relative who presumably lacks the ability to make informed decisions on his/her own behalf. Does this person have a trustee or a committee acting for them? The other has an elderly relative residiing there- is this the other tenant in common? Would either party WANT to sell?

I personally would agree with your solicitor that this is definitely an estate where you should take full legal and tax advice.

Revenue are usually very understandinig when it comes to situations like this and it is possible they might, if presented with a good case that you are not yet beneficially entitled to the properties given the circumstances, agree to defer any tax payable until the sale of one or death of one of the relatives etc.