Selling a property after Probate
As the Executor of the Will, you must write to all asset holders to get valuations of the deceased’s assets as they stood on the date they died. For bank accounts, this will be a statement. For property, you will need three professional valuations. For specific assets, like collections and shares, there are special valuation rules. You must also ascertain the extent of any Liabilities of the deceased.
Once the value of the estate is known, you can decide which Inheritance Tax (IHT) Forms and Probate Forms need to be completed to obtain the Grant of Representation.
Once the Grant of Representation has been obtained you need to first pay any Inheritance Tax (IHT) and Capital Gains Tax or Income Tax due. Any tax and administration costs can be deducted from the estate before it is distributed amongst the beneficiaries.
Gifting money after inheriting
Upon selling the property you may have a substantial amount of money left to you. Many want to use this as a pension pot or choose to invest it or help a family member.
If you wish to help a family member may be a grandchild to get onto the property ladder or someone with a debt or desire, it’s important you have this arrangement legally agreed upon. We realise this may seem unnecessary or heavy-handed however you need to consider all the what-ifs.
For example, if you gift money to your granddaughter for a house, she is buying with her partner, this money will not be payable if they separate and sell their home at any time in the future unless there is an agreement.
Many legal options are available when gifting money, depending on the circumstances. We would recommend you discuss your future plans with your conveyancer as they will be able to advise you.
Investing your money after inheriting
If you wish to invest a percentage of your sale proceeds, we would recommend you seek independent legal advice after speaking with a financial investment expert.
The value of investments can go up or down. You can invest your money using various methods and at various levels of risk. Your best course of action would be to speak with an independent expert or your bank manager.