Apparently 36% of us will inherit a property at some point in our life. There is a lot to consider such as whether to retain the property or sell it, and if you do sell it should the property be sold by the Executor or transferred to the beneficiaries and then sold.
Is the gift subject to inheritance tax? If so how will this be paid. Is there a mortgage? If so, what assets or policies are there to clear the mortgage, and if none can it be transferred to a beneficiary? This is just a few of the matters that need to be considered with a property.
With any inheritance it is important to take appropriate advice regarding your options. It is also important to consider the tax position including inheritance tax, income tax and capital gains tax.
Here at Hedges we are experienced in dealing with the administration of an estate, and can assist with advising both Executors and Beneficiaries.
Thirty-six per cent of us will inherit a property at some point in our life, according to research by finance provider Market Financial Solutions. Suddenly gaining a house can be complicated, and given the sums involved — insurer Royal London estimates that grandparents are typically living in properties worth £400,000 to £500,000 that they intend to pass on — it is important that you make smart decisions. You have three options: live in it, let it out or sell it. In many cases, property is inherited by a number of co-beneficiaries — siblings, for example. If you decide to sell and split the proceeds, then capital gains tax could be due if the property has gone up in value between the death and the decision to sell.