Readers’ forum: Estate administration

We are regularly asked to advise where a property is the main asset of the estate of a deceased surviving spouse. The executors often ask us how to balance inheritance tax (IHT) and capital gains tax (CGT) on a sale out of an estate in administration if indeed it is possible. We have never been completely clear about the rules. We understand about appointing a property to individual beneficiaries before sale to enable personal capital gains tax allowances to be brought into play.

However if for example we have a non-inheritance tax paying estate we are not completely clear about the possibility of putting a higher sale price back for probate purposes when a lower estimate has already been used. In other words adjusting it to fit.

Taxation readers’ views would be much appreciated.

Query 19 679 – Querist.

Has the death or...