When administering an estate, it is important to remember that there may be capital gains tax consequences for the beneficiaries. The beneficiaries are deemed to inherit at the probate value, which is the value of the property as at the day the deceased died. An estate has one capital gains tax allowance afforded to it but any increase in value in excess of this will be taxed at 28% for residential property.
In such circumstances, it may be advantageous to assent the property into the names of the beneficiaries. This allows each beneficiary’s individual annual capital gains tax allowance to be applied to the gain. Additional allowances may also be applicable if a beneficiary is married or in a civil partnership.
The effect is that the capital gains tax bill is significantly reduced and the amount passing to the beneficiaries from the estate is maximised.
How does the process work?
You are invited to a meeting to discuss your wishes which we can conduct via video conferencing. We are equally happy to discuss matters over the telephone or by email. Alternatively, we can meet at our office or your home if that is more convenient for you.
We shall draft the trust deed in accordance with your requirements and send it to you with a full letter of advice. Once you are happy, it can be prepared ready for signature and the settlor and trustees will need to sign it. We are able to store trust deeds in our firm’s storage facility for safekeeping, which we do at no extra cost and we will also provide a signed photocopy for your own records.
How long is the legal process?
We normally aim to send a draft document to you within a fortnight of our initial meeting but if there is particular urgency, we can prepare the document more quickly.
Is it expensive?
We are usually able to provide a fixed fee service for the drafting of such a document and advising you on the same. Please call or email us firstname.lastname@example.org for a quotation.
What are the things people should consider before calling?
You should consider the following:
- The value of the estate.
- Possible gains that a beneficiary may already have made in the tax year.
Why are Grant Saw the best people for the job?
We are the largest private client department in the local area and have a number of dedicated specialists in the team. As a department, we pride ourselves on providing excellent client service, with a friendly and approachable manner and we are frequently instructed by new clients based on recommendations received from our existing clients. We also hold the Law society accreditation for excellence in Wills and Probate, known as WIQS (Wills and Inheritance Quality Scheme), as well as having members of Solicitors for the Elderly and STEP in the team. These are all demonstrative of the expertise and dedication our lawyers have in making sure our clients receive the best advice possible.