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Answered in 23 hours by:
3/10/2010
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 16,712
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
VerifiedCan you tell me how much time has elapsed between the date of death of the individual who appointed you as executor of his or her estate and the present please. How many beneficiaries are there?
Edited by Tony on 3/10/2010 at 4:15 PM EST
Edited by Tony on 3/10/2010 at 4:15 PM EST
The capital gain, if any, will be the amount the disposal proceeds of the properties exceed the probate value by.
As the executor of the estate, you are entitled to the annual CGT exemption for the tax year in which the death occurred and the following two tax years. So, if you sell the properties within the estate, at best you would get one CGT exemption and at worst none depending on the tax year in which the person you are representing died.
As there are six beneficiaries, each of whom is entitled to an annual CGT exemption of £10,100 it would almost certainly be more tax efficient to put the properties into their names and let them sell them. The current rate of CGT is 18% so six exemptions would save £10,908 in CGT.
You can read about bare trusts here. There would appear to be nothing to be gained by going down such a route and I really don't see any advantage in setting up a trust of any sort.
As the executor of the estate, you are entitled to the annual CGT exemption for the tax year in which the death occurred and the following two tax years. So, if you sell the properties within the estate, at best you would get one CGT exemption and at worst none depending on the tax year in which the person you are representing died.
As there are six beneficiaries, each of whom is entitled to an annual CGT exemption of £10,100 it would almost certainly be more tax efficient to put the properties into their names and let them sell them. The current rate of CGT is 18% so six exemptions would save £10,908 in CGT.
You can read about bare trusts here. There would appear to be nothing to be gained by going down such a route and I really don't see any advantage in setting up a trust of any sort.
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 16,712
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
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