In an estate where a property is going to sell for more than the probate value resulting in a CGT liability, is there anything we can do to appropriate the house to minors?
The only beneficiaries of the Will are two minor children of the deceased who inherit on reaching 18.
Or are we simply stuck with the gain and the associated CGT liability.
Would appreciate any guidance.
Thank you
If the minors’ interest is contingent upon them attaining age 18, and they are both under that age, an appropriation to trustees will result in only a half share of an individual’s CGT exempt amount being available to reduce the liability on sale. If the sale is made as personal representative, provided it is made during the tax year of death or the following 2 tax years, the full individual’s annual exempt amount will be available.
I would be reluctant to appoint out the property to the minors absolutely merely to secured a potential CGT advantage.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals