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Ask Clare Your Own Question
Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 34276
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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Im one of the executers of the will and my dad is, my grandad

Customer Question

Hi im one of the executers of the will and my dad is, my grandad passes away, he has 2 properties my dad owns half and other half is split 3 ways which is 16.7% with my dad included in the share, also my grandads house, my dad has 40% and other two 30% each.
i wanted to ask as an executers do we have the right to pay them off, even if they don't want to sell their share?
Thanks leah
Submitted: 2 years ago.
Category: Law
Expert:  Clare replied 2 years ago.
HiThank you for your questionMy name is***** shall do my best to help you but I need some further information firstWhat reason have the other beneficiaries given for refusing?
Customer: replied 2 years ago.
Hi Clare they want to keep their share of their inheritance as property and not sell, so I'm wondering how we meant to pay the inheritance if we can't get mortgage or sell property
Expert:  Clare replied 2 years ago.
As Executors you have to transfer the properties into the joint names of the Beneficiaries.As a joint owner your father will then be entitled to insist that the properties are sold - and can then buy them at the market price from his co-ownersI hope that this is of assistance - please ask if you need further details
Customer: replied 2 years ago.
Thanks , Would he be able to do this on the the other house which he has inherited 40% ?
Expert:  Clare replied 2 years ago.
He can do this on both properties
Customer: replied 2 years ago.
All 3 properties ? So he can make the decision on whether to mortgage or sell,
Expert:  Clare replied 2 years ago.
Once the properties are in the name of the Joint owners your father can offer to buy the others out - and if they refuse then he can apply to the Court for an Order for sale
Customer: replied 2 years ago.
Thanks Clare, can we not do that with getting the probate?
Customer: replied 2 years ago.
Hi Clare when we get probate can executers apply for the mortgage to pay the inheritance tax? Although my dad owns 40% and they have 30% each will they be allowed to a apply for mortgage , to pay theirs and they can buy my dad out on his share ? Thanks
Expert:  Clare replied 2 years ago.
You cannot get probate without dealing with the Inheritance Tax firstInheritance Tax is paid by the estate and not the beneficiaries
Customer: replied 2 years ago.
So would l have to sell the estate to pay inheritance tax?
Expert:  Clare replied 2 years ago.
How much is the Inheritance Tax and what assets are there?
Customer: replied 2 years ago.
Hi Clare can I sell the estate , so I pay the inheritance tax bill? I am seeing a solicitor to do the probate form and inheritance tax on the 29th October when I have all the paper work ready. I just wanted to be prepared. Thanks
Customer: replied 2 years ago.
Hi Clare we have esimated with all the valuations excluding my dad is half ownership is £1,100,000 may be alittle more inheritance tax
Thanks
Expert:  Clare replied 2 years ago.
Are the properties the only assets
Customer: replied 2 years ago.
Yes 2 properties are renting to tenants as well
Expert:  Clare replied 2 years ago.
All three houses are owned jointly with your father?
Customer: replied 2 years ago.
Good morning 2 are joint and one is sole owner by mygrandad , which is not rented. the 2 joint ones are rented to tenants.
Thanks
Expert:  Clare replied 2 years ago.
How much is the one in his sole name worth and who has it been left to?
Customer: replied 2 years ago.
Hi sole one is 1,300.000 my dad inherited 40% and the two othes 30% each.
Thanks
Expert:  Clare replied 2 years ago.
Then that is the property which will have to be sold - to your father if he wishes to raise the mortgage on that one
Customer: replied 2 years ago.
When would I have to do this? And what if the others disagree?
Expert:  Clare replied 2 years ago.
As executor you have to make arrangements to cover the Inheritance Tax.This mean that one of the Properties will have to be sold.Since the only property that the estate has full control over is the one in his sole name that is the one which will have to be soldIf they do not want any of them sold then they will each have to provide their share of the Tax bill
Customer: replied 2 years ago.
Wil I be able to sell without probate ? If they can't raise the money? To pay tax
Expert:  Clare replied 2 years ago.
No You have to obtain Probate.However there are arrangements that can be made with the revenue to allow probate to go ahead so that the property can be sold unless of course your father can raise the money to pay the tax in return for whichever property(ies) he is willing to buy
Customer: replied 2 years ago.
Will the inheritance tax be paid fully or is there any other ways?
Expert:  Clare replied 2 years ago.
There are other ways including payment by instalments details here
Expert:  Clare replied 2 years ago.
www.gov.uk/paying-inheritance-tax/yearly-installments
Customer: replied 2 years ago.
Hi Clare so I can pay part inheritance tax then a 10 year instalments, do you the percentage of payment which would be due? Thanks
Expert:  Clare replied 2 years ago.
I am afraid that is something only someone with the entire file available to them can calcualte
Customer: replied 2 years ago.
Ok, thanks, ***** ***** think I should make a payment when my solicitors fill my forms In or wait until all the calculation is done by the tax man ? Because he passed away August 22nd 2015, and I think I have to pay in March 2016
Thanks
Expert:  Clare replied 2 years ago.
You hav eno fund sto make a payment so this is a matter to discuss with the solicitor at the first hearing
Customer: replied 2 years ago.
Also I'm trying to find my Grand dad income tax paperwork and I can't find a single one so will have to phone inland revenue to find out ?Ok thanks so much for your help, if I think of anything else I let you no.
Kind regards
Expert:  Clare replied 2 years ago.
Just ask if you need help - you are doing well so far (despite difficult beneficiaries)
Customer: replied 2 years ago.
I know he needs a tax code which I can't find, i'll try and look again . I know it's very difficult he only passed away two months ago and everyone is just being difficult, wanting to know everything so quickly because they come from Cyprus they live in Cyprus they don't understand the procedures in London
Expert:  Clare replied 2 years ago.
Yes that is hard.Look for a P60 or something like that - if not a phone call will get it sent to you
Customer: replied 2 years ago.
Ok thanks what if he hasn't payed his income tax at all?
Expert:  Clare replied 2 years ago.
I am sure he has - do not worry
Customer: replied 2 years ago.
Hi Clare I can't find any income code, the neighbour said he maybe of thrown them away, so I'm going to have phone inland revenue. When I go and see solicitors do you think I should apply courts to sale to sell their shares which is 16% each to my dad.
Thanks
Expert:  Clare replied 2 years ago.
Hi
You cannot make any application to sell those shares.
You will have to sell the house held in the estates sole name
The inland revenue will give you them tax code
Clare
Customer: replied 2 years ago.
Good morning would all 3 of us have tax codes ? When filling tax form for income would I have to have 3 short tax forms , to fill on there shares of profits or would it be my dad doing the income tax form including there share. So confusing,
Thanks
Expert:  Clare replied 2 years ago.
Hi
None of the beneficiaries will fill in fiorms - it is the ESTATE that is liable
Clare
Customer: replied 2 years ago.
Ok thanks, ***** ***** the inland revenue will give you them tax code?
Would be for the estate tax code?
Thanks
Expert:  Clare replied 2 years ago.
NoYou are looking for your grandfather's tax code so that you can deal with his outstanding income tax.Inheritance tax is an entirely different matter
Clare and other Law Specialists are ready to help you
Customer: replied 2 years ago.
Ok thank you much appreciated all the information you have given me and grateful .
Expert:  Clare replied 2 years ago.
You are most welcome - good luck