I am trying to work out who is responsible for reporting the sale of a property,which is the subject of a specific gift in a Will, to HMRC for CGT purposes .
The executors and the trustees of the Will are the same, but the administration is ongoing.
The property was left to the trustees of the Will on a discretionary trust, but was not transferred from the name of the deceased to the trustees.
The property has been sold and the executors do not intend to transfer the sale proceeds to the trustees until the 10 month period from the date of the Grant has passed.
I am not therefore sure if it is for the executors to report the sale, or if the trustees should do it as the property was the subject of a specific gift?
Until such time as executors appropriate an asset to the specific devisee, any disposal is the executor’s disposal. I do not believe that the doctrine of relation back will apply where the executor appropriates the proceeds of sale of the specifically devised property in place of the property itself.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
If a taxable gain is considered to have arisen relatively soon after the death, can anyone be sure that the estimated value for IHT/acquisition value for CGT will eventually be accepted by HMRC?
Are the particular details of this case such that Anna is sure what gain/loss [if any] may have arisen?
If so, should not the executors/trustees and their advisers be considering the overall tax due, and the proper attribution of this to the respective estates?
Trustees under a will trust are able to exercise their powers prior to the administration of an estate being completed. Any such will trust being validly constituted from the date of death.
It thus seems necessary to determine on the facts whether the sale was executed by trustees or whether the sale was made by the PRs as part of the estate’s administration.