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Where Taxpayers and Advisers Meet

Inheritance tax and deed of variation

worldlyman
Posts:11
Joined:Sat Feb 10, 2018 1:14 am
Inheritance tax and deed of variation

Postby worldlyman » Sun Oct 27, 2019 9:45 pm

I wanted to confirm here there a no circumstances where probate can be granted without full inheritance tax being paid first ?

Massive family dispute over who's paying tax (one sibling self appointed themselves administrator) as father left no will.

I assume we have to take a loan which we use to pay IHT then use proceeds from property sale to pay lender back ?

Also, if deed of variance done where one person gets a property solely (other people written out) can they sell it before probate is granted for any reason ?

Thanks in advance.

jerome.lane
Posts:237
Joined:Mon Aug 12, 2019 8:41 am
Location:Sandhurst, Berkshire
Contact:

Re: Inheritance tax and deed of variation

Postby jerome.lane » Mon Oct 28, 2019 9:54 am

Where property is involved, it is possible to ask HMRC to agree to staged payments (up to over 10 years). Interest will be added to the second and subsequent payments. As there are family disputes, you should all agree to appoint a professional before you end up never talking to each other again or whittling the whole estate away in legal fees.
Jerome Lane
Tax Adviser
Telephone: 07943 005902

worldlyman
Posts:11
Joined:Sat Feb 10, 2018 1:14 am

Re: Inheritance tax and deed of variation

Postby worldlyman » Mon Oct 28, 2019 6:28 pm

Thanks for your reply.

Could I confirm that there are NO circumstances where you can probate before IHT paid ?

Also, you can’t sell a property before probate granted if in a deed of variation property transferred to one of several siblings name ?

AnthonyR
Posts:322
Joined:Wed Feb 08, 2017 2:33 pm

Re: Inheritance tax and deed of variation

Postby AnthonyR » Wed Oct 30, 2019 11:54 am

IHT has to be paid (or as Jerome says the the first ten yearly instalment if the only asset is property) before you can get probate. It's a prerequisite for HMRC to sign off before the Probate Registry will issue the grant.

The deed of variation changes the destination of the eventual inheritance, but without probate there is no-one who has the legal power to transfer the property into the sibling's name in order for them to sell it.

So bottom line is no and again try to get a professional advisor in place who can advise the family and avoid a dispute which involves everyone getting their own lawyers.
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk


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