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Legal question(s) for the forum

Radfordman

pfm Member
My Mother died in 2013, and left the family home to be divided between my Sister and myself, or to be sold. The grant of representation was issued in 2014, and a valuation was reached that was acceptable by the District Valuer and signed by the Probate Officer. My Sister subsequently sold me her half of the house in 2019 for a price far higher than that valuation.

I have recently discovered that my Sister is of the opinion that Probate has not been concluded, as she maintains that the executors bank account which is in her name has not been divided, and that when I bought the house from her he we had not been registered as the joint owners of the family home..

I believe that as the house was essentially owned by us both, no real error occurred and we are both happy with the outcome. When we sold and bought the property that was left to us in the will.

She is concerned that as she has not divided the monies in the executors account, probate is not complete.

Questions

1. Are there any legal complications with the house not being registered prior to the sale, it being owned by the estate?

2 Does the extra money paid for the house be included in Probate because we did not have it registered in our names, and thus incur more Inheritance taxes?

3 Is the executors account a real issue, does that constitute Probate being still open?

4 Can we just divide the money in the executors account which has been included on Probate and call it a day?
 
If Inheritance tax was due it was due on the value of the house on inheritance. Nothing to do with any sale price.
The house was wrongly sold by the executors if a grant of probate was not in force. It did not “essentially belong to both of you” in any legally recognised form.
As long as you are both the only beneficiaries just divy the money out. If there were other beneficiaries they ought to have been given a final statement of account by the executor/s.
As long as monies remain in the executors account the procedure has not been completed.

I’d run it by a solicitor because the executor/s are personally responsible if any thing is wrong.
 
^^^ Sounds right from when we went through it all.

Al that counts is agreed value of the estate at time of death, legally.
 
If Inheritance tax was due it was due on the value of the house on inheritance. Nothing to do with any sale price.
The house was wrongly sold by the executors if a grant of probate was not in force. It did not “essentially belong to both of you” in any legally recognised form.
As long as you are both the only beneficiaries just divy the money out. If there were other beneficiaries they ought to have been given a final statement of account by the executor/s.
As long as monies remain in the executors account the procedure has not been completed.

I’d run it by a solicitor because the executor/s are personally responsible if any thing is wrong.

Thank you, this is very useful, yes, the house was valued soon after death, and inheritance tax paid on that valuation.
 
I only handled three probates in my career, all of them in the 1970s
^^^ Sounds right from when we went through it all.

Al that counts is agreed value of the estate at time of death, legally.
Not so. If the executors sell the property for more than the valuation declared in the probate they then have to pay tax, if the estate reaches the tax limit, on the extra. There's a duty to declare it, though doubtless many don't.
 
I only handled three probates in my career, all of them in the 1970s

Not so. If the executors sell the property for more than the valuation declared in the probate they then have to pay tax, if the estate reaches the tax limit, on the extra. There's a duty to declare it, though doubtless many don't.
He bought half the house.
 
I only handled three probates in my career, all of them in the 1970s

Not so. If the executors sell the property for more than the valuation declared in the probate they then have to pay tax, if the estate reaches the tax limit, on the extra. There's a duty to declare it, though doubtless many don't.

Thank you. The death was in late 2013, valuation in 2014, the Grant of Probate in 2014, but my sister's half share of the house was not sold to me until 2019, when values had gone up a bit. Does this make any difference?
 
Thank you. The death was in late 2013, valuation in 2014, the Grant of Probate in 2014, but my sister's half share of the house was not sold to me until 2019, when values had gone up a bit. Does this make any difference?
there is no inheritance tax issue.
But your sister should have had a CGT bill on the increase in value of her share from 2014-2019, unless you were both living there together with it as principle private residence.
 
there is no inheritance tax issue.
But your sister should have had a CGT bill on the increase in value of her share from 2014-2019, unless you were both living there together with it as principle private residence.

Thank you, many thanks, very useful info. I was main carer for my Mum for many years, living in the (her) house as my main residence. My sister did not live there. So, my sister should have paid some CGT. I wonder if she has.
 


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