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 NO TAKERS FOR
THE FLATS
The second part of Liz Hodgkinson’s diary on coping with
Inheritance Tax
August- October 2004
Jo (John’s former wife) and I have to go to another solicitor
and sign the Probate forms after swearing on the Bible in front of
an official. This little escapade costs us £18. We receive an
offer on a flat belonging to John, while negotiations for his own
home are also going ahead. The solicitor tells us that we, the
beneficiaries, are liable for Capital Gains Tax on the sales if
the sale price is in excess of the probate valuation. This is to
prevent deliberately low probate valuations.
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October 2004
Eight months after John’s death we are granted Probate, after
Inheritance Tax - amounting to £165,000 - is paid. Bank accounts
are now unfrozen and wound up. There is about £11,000 left after
bills are paid.
The sale on John’s home falls through at, literally, the eleventh
hour, just when we were about to exchange.
November 2004
There is no more interest in John’s home, but one sale goes
through, extremely slowly, on a rental flat. Otherwise, the market
seems to have gone completely dead.
December 2004
We decide to rent out John’s home rather than have it standing
empty, and a tenant moves in. As executors, we are, after
Probate, allowed to rent out John’s property and receive rents.
January 2005
We receive a lengthy statement of account from the Probate
solicitor, pay him, and get all the paperwork back. It is more than
a foot high. |
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Liz Hodgkinson is a prolific author
and journalist contributing to many publications. She
has written over 40 books on a wide variety of topics
and has a background in national newspapers. She now
falls into the 'later-life' age category and in
recent years has started writing for this 'older'
market, and contributes to Saga magazine, among
others.
Liz has two sons and four grandchildren. She is
divorced and now lives in London and on the
South Coast. She has written three books on property
matters and her interests include snooping round
other people's houses and viewing showhomes.
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Jo and I set up a joint bank account whereby we can receive rents and
other monies, and start to pay the six beneficiaries, including
ourselves. We exchange contracts on one of John’s rental flats. Thank
goodness at least one has gone; still no interest in the other two.
February 2005
Almost a year has elapsed since John died and we still have not
tied up the estate. Two properties remain unsold, and who can say
how long they will take? At least the beneficiaries have had the first
tranche of their money, and the paperwork is no longer piling up.
Even when using a solicitor, there is endless work for the executors
when Inheritance Tax (IHT) has to be paid. There is, we realised, no
real way of wriggling out of this tax. The Inland Revenue can - and do
- query absolutely everything. |
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