My father has recently died leaving no will. He is the owner of three UK properties. I am about to embark on the administration of his estate. Please could someone tell me whether it is possible to immediately begin the sale of one of properties in order to raise the funds to pay the inheritance tax due on the whole estate?
With many thanks
Michael
You can begin the process of sale but you cannot go to completion and realise funds until you are granted probate.
You don't need to pay IHT on the property element of the estate in order to get the grant of probate. The non-property element has to paid in advance, but most financial institutions can transfer money directly to The Revenue to save you taking out a loan.
Many thanks for your replies. I now have a second question and for the sake of clarity will begin again from the beginning:
My father has recently died and leaves three UK properties, which will have to be valued for the probate (LoA). I understand that if any of the properties had had sitting tenants then the value would have been less. My brother has occupied the first property, rent-free, since the
1980's, while I have lived in the second property, as helper and carer to my father, since the early 1990's. Is there any way that the IHT valuation of these two properties could be reduced in light of these facts?
I think for starters you should request these forms from Inland Revenue IHT200, IHT 210, SP1, SP2 Not exactly bedtime reading but, if they don't answer your questions, they'll point you in the right direction.
A bit risky to exchange without getting probate, surely?
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