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THE ULTIMATE GUIDE TO SELLING INHERITED PROPERTY Selling an inherited property isn’t the easiest thing to do, so, to help you to make sense of it, we have put together a guide: Take a look at the will The will is an all important document that is going to help ascertain who the property in question has been left to, as well as who is the named executor that needs to carry out the conditions of the will. Having the will is going to make the process a whole lot easier to make your way through, however, if you cannot find it, then you are going to need to apply for probate in order to sell the inherited property. Applying for probate Probate registries are branches of the court that are there to help you to ensure that you have legal permission to carry out the execution of the will (and in turn, the sale of the property). If you are not named in the will, then you will need to apply for probate (or grant of representation) at your local probate registry. This document gives you the legal right to access tax affairs, investments and bank accounts of the person who is deceased, as well as distribute their estates out. Arrange a house valuation One of the key parts of your probate application is to ensure that you understand the value of the estate of the deceased person. Of course, you will need to take a look at their bank details and other financial paperwork. However, you also need to ensure that you arrange for an estate agent to come to the property to value it, which will then be passed to HMRC as a part of your probate application. Remember inheritance tax When you sell a property or inherit a sum of money from someone, then you are going to need to pay inheritance tax. This is a one-off tax and will be collected from HMRC after the estates have all been dealt with. Inheritance tax is charged at 40% and it is only applied after £325,000 of assets has been passed. Not to mention capital gains tax Another tax that you need to keep in mind is capital gains tax. This particular tax is charged on any profit that you make when you sell an asset that has increased in value. It may be applied if you sell a property that has seen its value increase since you inherited it, unless you live in it before you sell it, which will then give you private residence relief. As you can see, there is plenty to think about when selling an inherited property. The process is a long one and could take well over a year to get through, so ensure you cover everything you need n


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