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Where Taxpayers and Advisers Meet
Inheritant Tax
Hi All, my girlfriends mother recently passed away and left a house. My girlfriend was next of kin but her dad, who was seperated was still married and on the deeds for the house. The house is now sold and the money is going to be split between my girlfriend and her sister - what will they have to pay tax wise?
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King_Maker
- Posts:6538
- Joined:Wed Aug 06, 2008 3:22 pm
Her father would normally inherit the whole property by survivorship - unless the joint tenancy had been severed or he was no longer a beneficial owner.
Has the solicitor confirmed that the 2 children are the lawful beneficaries of the house proceeds?
The current threshold for IHT is £275,000 (which includes any gifts in the previous 7 years). Was her Estate worth more than that?
There could be CGT payable on any increase in the house's value since the date of death.
Has the solicitor confirmed that the 2 children are the lawful beneficaries of the house proceeds?
The current threshold for IHT is £275,000 (which includes any gifts in the previous 7 years). Was her Estate worth more than that?
There could be CGT payable on any increase in the house's value since the date of death.
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King_Maker
- Posts:6538
- Joined:Wed Aug 06, 2008 3:22 pm
IHT does not seem to be applicable, assuming the whole Estate was less than £275,000 (2005-06).
I assume the house was sold at Market Value - especially if was sold to a "connected" person? And was the value the same as at the date of death?
Has anything been done about her father's possible entitlement to ALL the Sale Proceeds? The Executor(s) can be held personally liable for negligent administation of an Estate. The fact that he was separated from her mother may be no relevance.
Has a solicitor been involved at all?
I assume the house was sold at Market Value - especially if was sold to a "connected" person? And was the value the same as at the date of death?
Has anything been done about her father's possible entitlement to ALL the Sale Proceeds? The Executor(s) can be held personally liable for negligent administation of an Estate. The fact that he was separated from her mother may be no relevance.
Has a solicitor been involved at all?
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robertmlaws
- Posts:100
- Joined:Wed Aug 06, 2008 3:10 pm
We presume the house is owned as tenants in common. If it were the more usual "joint tenants" then the estranged father would own the house 100% following the wife's death regardless of the will.
It has been said above that there is no CGT liability (apart from that corresponding to the increase in value since the death). But if the house has been owned as tenants in common with one owner not resident, will there not be a CGT liability to him if is sold (as is envisaged)?
Robert
IANAL
It has been said above that there is no CGT liability (apart from that corresponding to the increase in value since the death). But if the house has been owned as tenants in common with one owner not resident, will there not be a CGT liability to him if is sold (as is envisaged)?
Robert
IANAL
-
King_Maker
- Posts:6538
- Joined:Wed Aug 06, 2008 3:22 pm
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