Probate and CGT

Hi there! This is my very first post. As Executor of an estate I valued the property for Probate purposes (doing Probate myself in Mar 2005) at €120,000, a figure based on a guessimate, a fact made known to the Probate official. The house was subsequently valued by 3 different Estate Agents as being €155,000 and €220,000 but sold for €126,000 in Jan 2006. The Solicitor handling the sale tells me that CGT might be liable based on the difference between the Probate price and the Sale price.

Is this the case and if so does the exemption limit of €1,270 per Beneficiary apply? There are 6 Beneficiaries incidentally, being the nephews/nieces of the deceased owner of the house.

Many thanks for any advice received,

Pat

Is this the case

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Yes.

and if so does the exemption limit of €1,270 per Beneficiary apply?

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Yes - but the property must vest in them first and then they sell as owners.

mf

You could file a corrective affidavit with a revised value of € 126,000. This would eliminate the gain, if it is accepted.

I am in a similar situation and have just filed one - awaiting the results.

Yes - but the property must vest in them first and then they sell as owners.

mf[/quote]

What is the situation when I as Executor have already sold intending to distribute the assets?

Thanks

Pat

Executor does not have any CGT allowances.

mf

If I understand the situation correctly therefore the Beneficiaries never actually 'own' the property, only the proceeds of its sale and thus are never liable for CGT which instead becomes a debt on the Estate (as personified by me as Executor). The Estate however as you say is not eligible for exemptions.

Can the costs of the sale (Legal and Estate Agent's fees) be classified as deductibles in order to arrive at a net capital gain amount?

Thanks,

Pat