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Clare, Solicitor
Category: Law
Satisfied Customers: 34885
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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Regarding Probate 1 Deceased has left a property value £450000

Customer Question

Regarding Probate
1 Deceased has left a property value £450000 which was bought £252000 and on which there is a current loan of £110000.
is the mortgage deducted from the value of the estate?
2 Is the allowance of £325000 per inheritor or is it fixed as there are 2 inheritors twins 2 years old, and have trustees.
3There are shares with a value of £60000 some of which were gifts and some of which were bought.
is the value of the shares taken at fixed date or at point of sale? and do the shares actually have to be sold or can the trustees hold on to them and sell at the most appropriate time?
4 The cash savings are mostly from earned income under PAYE on which tax has already been paid and a proportion are from wedding gifts. Will they also be taxed?
5 During the period of incapacity child care fees were incurred by grand parents can these be reimbursed from the estate?
Submitted: 2 years ago.
Category: Law
Expert:  Clare replied 2 years ago.
Thank you for your question.
My name is ***** ***** I will do my best to help you
1. Yes the Mortgage is a debt on the Estate
2. The £325,000 nil rate tax band relates to the Estate - not the beneficiaries It does not matter how the assets were obtained
3. The value of the Shares is the value at the date of Probate - it is up the the Executors if they are sold or not
4. They simply form part of the estate
5. Yes if the Executors agree
Please ask if you need further details
Customer: replied 2 years ago.

Based on the above information am I correct in assuming the tax liability would be as follows:

Estate property 450000

shares 60000

cash 70000

Less mortgage -110000

Less Allowance -325000

Balance 145000 at 40%

Customer: replied 2 years ago.

Can I have confirmation of previous reply .


Expert:  Clare replied 2 years ago.
My apologies for the delay - yes that is correct