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Legal question(s) for the forum

Discussion in 'off topic' started by Radfordman, May 5, 2021.

  1. Radfordman

    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?
     
  2. mansr

    mansr Objectionist

    Hire a lawyer.
     
    Funk and Dozey like this.
  3. Bob McC

    Bob McC Living the life of Riley

    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.
     
    Funk, Radfordman and Vinny like this.
  4. Vinny

    Vinny pfm Member

    ^^^ Sounds right from when we went through it all.

    Al that counts is agreed value of the estate at time of death, legally.
     
  5. Bob McC

    Bob McC Living the life of Riley

    You cannot sell an inherited property without grant of probate.
     
    Radfordman likes this.
  6. Radfordman

    Radfordman pfm Member

    Thank you, this is very useful, yes, the house was valued soon after death, and inheritance tax paid on that valuation.
     
  7. Radfordman

    Radfordman pfm Member

    Thank you, yes we had a Grant of Probate before my sister's share of the house was sold to me.
     
  8. Radfordman

    Radfordman pfm Member

    Thank you, yes we had a Grant of Probate before my sister's half share of the house was sold to me.
     
  9. Radfordman

    Radfordman pfm Member

    I had one, cost was £450 per hour plus VAT, nearly broke me!
     
  10. Thorn

    Thorn pfm Member

    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.
     
    Radfordman likes this.
  11. mansr

    mansr Objectionist

    I'm in the wrong line of work.
     
  12. Vinny

    Vinny pfm Member

    Although it does make you wonder how many REALLY gullible people are out there.
     
  13. mansr

    mansr Objectionist

    P. T. Barnum had an estimate.
     
  14. Bob McC

    Bob McC Living the life of Riley

    He bought half the house.
     
  15. Radfordman

    Radfordman pfm Member

    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?
     
  16. Bob McC

    Bob McC Living the life of Riley

    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.
     
    sean99 and Radfordman like this.
  17. Thorn

    Thorn pfm Member

    I wish...
     
    Radfordman likes this.
  18. Dozey

    Dozey Air guitar member

    There may be a capital gains tax issue, as Bob McC has pointed out.
     
    Radfordman likes this.
  19. Radfordman

    Radfordman pfm Member

    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.
     
  20. Radfordman

    Radfordman pfm Member

    Thank you.
     

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