Appropriating Inherited Property

[Lulabel]

Hi there
Before my single parent passed away they requested that the probate solicitors give me the option to take their house as my half of their estate; I understand that this is done via the process of appropriation.
I have a couple of questions
1) The solicitors submitted the lowest of 3 estate agent valuations to HMRC. I was concerned that this was too low & we might be subject to a fine as well as additional IHT if HMRC's district valuer thinks the property is worth more, but the solicitor did not seem to think it a problem
2) We have not been granted probate yet, but an estate agent looked at the house & reckoned it was worth 30-50,000 more than submitted probate value. If HMRC values the house for more, will we be subject to a fine and additional IHT?
3) if I do decide to take the house via appropriation, do I have to pay CGT on the increase in value? Do I have the right to take it at the new (DV) value? Or, can the solicitor & executor do another estate agent valuation, to get me to pay more for the house, if the estate agent's valuation is more? Are the wishes of the other beneficiary taken into consideration?
Also, can I, as a beneficiary, contest the dv's evaluation?

[pawncob]

It's normal for the DV to negotiate the declared value for probate. Exec's valuation is just an opening gambit.

No fines if value amended, but may be interest payable on increased IHT.

Your base cost for CGT is agreed probate value.

Depending upon IHT position, it may be advantageous for a higher/lower value to be agreed. If HMRC don't challenge the value, the submitted value will be used which may not be to your advantage.

[Lulabel]

Many thanks for this
If you could clarify something?l:
Is the probate or HMRC/DV amended probate value the final sale/appropriation price? Or can the solicitors/executor/beneficiary put the property on the market for more? And increase the IHT owing even more?
Thanks!

[maths]

Once the DV (or HMRC) has agreed a value of the property that is the end of the matter for IHT purposes; in the language the property's value has been "ascertained".

Thereafter the executors can seek to sell the property for whatever value they can get.

The DV's/agreed value becomes the base cost for CGT purposes of those who inherit the property.

Property valuation is often a contentious area and before submitting an IHT return containing any proposed value care must have been taken in arriving at the figure adopted and HMRC/DV will typically ask for evidence to support the figure. Penalties may be levied but only where the executors are found to have been careless/negligent.

[Lulabel]

Cheers!