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I'm an executor and I have a question re- an estate containing a property that is left to 3 beneficiaries (property not specified in will just equal shares of residual estate). One of them would like to inherit the property and we are looking at the best way to achieve this. It is annoyingly complicated by the fact that the property is of greater value than their third share (otherwise could definitely, simply be achieved by deed of variation). Grant of Probate obtained IHT all paid this is purely to do with distribution. Is it best to:
1) deal with by appropriation and if so do you have to revalue to property i.e. probate value can't be used. Stamp duty due on consideration paid to estate (consideration= the difference between 3rd share and value of property)?
2) assent to the 3 beneficiaries as terms of will? Then do a transfer to transfer to the third achieved by them buying the other two out Stamp duty on 2/3s of value of property- presume latter part is then a private sale nothing to do with estate.
3) Do a variation. (I saw this suggested here in another thread describing a similar situation) and then sorting out the remaining difference in value- no stamp duty. However, my understanding is a variation can't involve any consideration so this wouldn't be possible- is this correct?
I should make it clear that if a variation could be done it wouldn't have any affect on IHT as full value of property was included.
I know we do need professional advice and will be getting this, but I'm just trying to make sure we ask the right questions and understand it as best we can first. Any help would be greatly appreciated. I'm sure this isn't an unusual situation where a beneficiary wants to keep the property, but needs to make up the difference. However, researching I've found no clear answers.
1) deal with by appropriation and if so do you have to revalue to property i.e. probate value can't be used. Stamp duty due on consideration paid to estate (consideration= the difference between 3rd share and value of property)?
2) assent to the 3 beneficiaries as terms of will? Then do a transfer to transfer to the third achieved by them buying the other two out Stamp duty on 2/3s of value of property- presume latter part is then a private sale nothing to do with estate.
3) Do a variation. (I saw this suggested here in another thread describing a similar situation) and then sorting out the remaining difference in value- no stamp duty. However, my understanding is a variation can't involve any consideration so this wouldn't be possible- is this correct?
I should make it clear that if a variation could be done it wouldn't have any affect on IHT as full value of property was included.
I know we do need professional advice and will be getting this, but I'm just trying to make sure we ask the right questions and understand it as best we can first. Any help would be greatly appreciated. I'm sure this isn't an unusual situation where a beneficiary wants to keep the property, but needs to make up the difference. However, researching I've found no clear answers.
