Will and CAT Query

Discussion in 'Wills, inheritances and gifts' started by TheBlueNile, 11 Nov 2018.

  1. TheBlueNile

    TheBlueNile Registered User

    Posts:
    11
    Hi all,

    I have two questions

    1. Take this scenario, an Aunty has made a will leaving ‘’entire estate’’ to two nieces, estate consists of bank accounts worth roughly 750000 and house valued at approx 750000, niece number one lives in aunties house as aunty in nursing home. When the time comes and will comes into effect (aunty is seriously ill) can nieces agree between themselves that niece 1 takes the house and niece 2 takes the money (this is what both nieces have agreed is best) even though the will doesn’t explicitly state that, or as the will states ‘’entire estate’’ does that mean that both will legally become 50% owners of money and house? If it is the case that both will take ownership of house and money, what would be best way for them to have niece 1 keep entire house and niece 2 keep just the money?

    2. My second question is around niece 1 who lives in house and cat liability, if niece one inherits house at 750000 she will be liable for tax bill of over 200000, she realises that she may have to sell house to pay the tax bill, her concern is that house is very old and may not sell quickly, if she cannot sell house she still will be liable for cat and will not be able to raise that kind of money, worried about defaulting with revenue and prosecution and huge interest, are there any solutions to this?

    Any feedback would be greatly apppreciated
     
  2. jpd

    jpd Frequent Poster

    Posts:
    1,496
    You can always sell a house quickly - it is a question of getting the price right.

    Unless the will explicitly states that the house becomes co-owned, then how the estate is split between the two is down to the executor.

    The CAT will be due by October 31st - in the same year if she inherits before 31st August and in following year after 31st August
     
  3. TheBlueNile

    TheBlueNile Registered User

    Posts:
    11
    Thank you for the reply JPD, I actually was not aware of that as in the executors can divide up estate as they see fit, in this case both nieces are executors and the beneficiaries so am i correct in saying lets say that they agree verbally niece 1 you get house at 750000 and niece 2 take money lets say it’s 600000 at the time that is totally above board and legit as the will states ‘’entire estate to be left to two nieces’’ it doesn’t explicitly state 50/50 so if one gets less if they both verbally agree that’s ok? Thank you