Inheritance Case Study
Our Client approached us with a complicated inheritance matter arising from his late Mother’s estate.
Our Client’s Mother was named as Executrix in the Will of his Aunt who had died many years previously. His Aunt’s estate owned land that at the date of his Mother’s death was still un-administered.
Roach Pittis were instructed to sell the land from the Aunt’s estate and deal with the legacies as per her Will. This we were able to accomplish through a chain of representation by our Client acting as administrator of his Aunt’s estate through his appointment as Executor of his Mother.
Where the land belonging to his late Aunt has increased significantly in value between the date of her death and the point at which it was to be sold there were significant Capital Gains Tax consequences on sale for the Estate.
In order to alleviate some of the tax burden prior to sale the land was transferred into the names of the beneficiaries (of whom there were many) so that they would have the benefit of their own individual Capital Gains Tax exemptions. In this way instead of the one exemption available to the Personal Representative being used the many exemptions of the many beneficiaries were utilised thereby reducing the Tax liability.
The effect of this was that the beneficiaries received a larger inheritance than they otherwise would have done as there was a substantial saving on the tax liability. Both our Client and the beneficiaries benefited with this outcome.
