Relief in a falling market

Relief may be available in a falling market if one is dealing with an estate in administration which has an inheritance tax liability.

If executors hold quoted shares and the market value of the shares falls before any transfer of the shares to the beneficiary it is possible to sell the shares (provided the sale occurs within twelve months after death) and substitute the probate value with the sale proceeds. All sales by the executors must be taken into account and any profit on sale deducted in arriving at the relief which is in sections 178 to 189 Inheritance Tax Act 1984. This reduces the estate chargeable to inheritance tax and a refund is obtained. The relief also applies to trustees of a will trust which has come to an end on the death of the life tenant.

If the executors or trustees then repurchase...