Property inheritance

J

jeff70

Registered User
Messages
9
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
 
Last edited:
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.
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.
jeff70 said:
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
Click to expand...
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.
 
Last edited:
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?
 
jeff70 said:
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).
Click to expand...
Because, for one thing, the estate may have a capital gain if the eventual selling price is above that valuation.
jeff70 said:
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?
Click to expand...
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?
 
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
 
You must log in or register to reply here.
Menu
Log in
Register