4 siblings left equal shares in holiday home. One sibling not interested in using the property and would like to be bought out by others. They agree. Value of property also agreed. Speaking as the sibling being bought out, is there any way to do this during probate to reduce charges to me.? (Stamp duty for example) Is there a financial advantage to doing ‘sale’ during probate process as opposed to inheriting and afterwards selling share to siblings? ~ or is there another better way to do this transaction. Thanks.
Siblings buying out interest in Holiday home left equally between them
- Thread starter Xraylady
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Pinoy adventure
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You could agree in advance but cannot complete sale until probate is completed.
Stamp duty would be only on the portion being bought with would be 75% of value.
Stamp duty would be only on the portion being bought with would be 75% of value.
You mean 25%?
Pinoy adventure
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If 3 siblings are buying 1 out it would be 75% for the 3.the OP (seller) wouldn’t have too pay any stamp duty
Brendan Burgess
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Are there other assets in the estate left to the siblings?
I don't know if it's allowed but an adjustment of the other assets would make more sense.
For example Holiday home worth €120k and €120k cash - you get €60k cash. They get 1/3rd of the holiday home and €20k cash each.
That would be the simplest if it's allowed.
But isn't stamp duty just 1%? So would it really be a huge burden to pay?
Brendan
I don't know if it's allowed but an adjustment of the other assets would make more sense.
For example Holiday home worth €120k and €120k cash - you get €60k cash. They get 1/3rd of the holiday home and €20k cash each.
That would be the simplest if it's allowed.
But isn't stamp duty just 1%? So would it really be a huge burden to pay?
Brendan
David_Dublin
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Can't it be vested to avoid stamp duty?
I have an interest in this thread. What does “vested” mean?
It depends on how the estate is left. If it’s all asserts divided up four ways then I think that the executor can opt to give you your share out of other assets so that it never vests for you. If the will says the holiday house is left to the four of you then I don’t think that there is a way around it. You could decline the asset but you would not be allowed to make up that difference in other assets.
David_Dublin
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I'm not sure the exact definition, but in practise it means the house being inherited by one or more beneficiaries where the will doesn't provide specifically for that.
Using different numbers....say an estate with a house worth 300k, 300k cash and shares, 3 beneficiaries. Will says sell everything and divide 3 ways. Executor can agree to vest the house to one sibling. That sibling would need to pay into the estate 100k. The other two siblings then inherit 200k each, and the house is vested to the one sibling. CAT value 200k. Value for CGT purposes in the future is presumably 300k. No stamp.
IANAL, nor an accountant, but the above is my understanding.