Property inheritance

[jeff70]

Hi
Hope someone can help with my query. In relation to a property inheritance (Will indicates property to be sold and proceeds disbursed), solicitor has asked for a valuation of the property at date of death for a revenue form. Is that what is used to set the amount inherited for inheritance tax purposes? If the property is then sold at a higher price, is there a tax assessment due on the difference eg CGT might be due ?
Thank you

 

[ClubMan]

The thread title seems misleading since what's being inherited here seems to be the proceeds of the sale of a property and not the property itself.

Hi
Hope someone can help with my query. In relation to a property inheritance (Will indicates property to be sold and proceeds disbursed), solicitor has asked for a valuation of the property at date of death for a revenue form. Is that what is used to set the amount inherited for inheritance tax purposes?

No. The amount inherited by the beneficiaries will only be known when the property is sold and the net amount after all relevant costs and taxes is known.

If the property is then sold at a higher price, is there a tax assessment due on the difference eg CGT might be due ?
Thank you

Such a gain will be most likely be assessable for CGT but that's for the estate/executor to deal with before disbursement of the net proceeds to the beneficiaries.

 

[jeff70]

Thanks, that’s very helpful. As the value for inheritance is the sale proceeds, I am wondering now why Revenue need a valuation at date of death (and what that is used for). Perhaps it’s just something that is asked for as a matter of course in the probate process, but won’t actually then be used in this case as only the proceeds will matter?

 

[ClubMan]

Thanks, that’s very helpful. As the value for inheritance is the sale proceeds, I am wondering now why Revenue need a valuation at date of death (and what that is used for).

Because, for one thing, the estate may have a capital gain if the eventual selling price is above that valuation.

Perhaps it’s just something that is asked for as a matter of course in the probate process, but won’t actually then be used in this case as only the proceeds will matter?

See above.

Why do you seem to be second guessing what the solicitor is advising? Are you the executor? If so then why not just ask them about such matters?

 

[Peanuts20]

Thanks, that’s very helpful. As the value for inheritance is the sale proceeds, I am wondering now why Revenue need a valuation at date of death (and what that is used for). Perhaps it’s just something that is asked for as a matter of course in the probate process, but won’t actually then be used in this case as only the proceeds will matter?

They need the valuation to understand the tax liability on the sale of the property, if any.

One of the last things the executor will have to do before funds are released is get a tax clearance cert from revenue for the deceased and all of this goes into that final decision by the revenue