I am an executor of an estate in Northern Ireland. My self and 3 siblings have inherited a 25% residual share in our late mother's estate, dod was spring 2016.
We are sale agreed on a property which mum owned with her ex husband and a gain is arising from the probate value, due to fact of a joint property discount allowed for IHT computation (they were tenants in common). The base value of the half share of the property we inherited is approx £200k for IHT/CGT purposes. The prospective sale value of the share is £235k. All four beneficiaries have unused cgt allowances, and 3 of the beneficiaries are lower rate tax payers. I therefore think it is wise to mitigate the CGT by vesting the property in the 4 beneficiaries, rather than using executor's allowance, but the question is how to do it?
I have come across the following but any advice which provides more clarity would be appreciated. I would rather effect a document than relying on an inference that residue has been ascertained
Assent at Land Registry - In NI we complete form LR17. The property is on unregistered land and therefore the time it will take to do this may interfere with the conveyance, as first registration may be required. Purchaser wants to complete in less than 2 months. So this doesn't seem like an option
Deed of Appropriation - I'm not clear how this differs from a deed of equitable assent, they seem to be used interchangeably. Is it correct that appropriation to a beneficiary occurs at present market value? In what circumstances can it be backdated to dod value? Is an appropriation only in satisfaction of a legacy or can it be in satisfaction of the residue?
Deed of Assent of Equitable Interest - This is my preference but I cannot find a draft of one anywhere.
Residue Ascertained - I have received a limited clearance letter from HMRC, but due to the fact that there is a small overseas estate some property tax liabilities in that jurisdiction are being uncovered which we did not know about when completing the IHT400. I have enough liquid funds to cover these but I may have to re-open the IHT account to have these brought into the calculation.
Thank you in Advance
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