I am dealing with an estate that has four properties. The three executors under the Will are also the residuary beneficiaries; we have a Grant of Probate with power reserved to two of them.
Two of the properties were sold for less than the probate values and the plan was to go back to HMRC and file a IHT38 to claim the IHT on the difference.
The other two are rented and the plan was for the residuary beneficiaries to keep these properties until prices rose to above probate value and then to sell. The properties were therefore appropriated by way of a Deed of Appropriation to the three of them (and their spouses) so they could receive the rental income in the interim.
They have now decided to sell the two remaining properties, each potentially at a loss on probate value.
Once sold, can I go back to HMRC and claim the IHT on the difference between probate value and sale value on the two appropriated properties?