Selling a home in the UK
Mar 21st 2024, 6:50 pm
#1
Just Joined
Thread Starter
Joined: Mar 2023
Posts: 24
Selling a home in the UK
I am a UK-US dual citizen, as was my husband. We were both domiciled in the US and recognized as such by the HMRC. Inheritance tax is not an issue for us in the UK.
My husband died last year. I had a UK attorney file for Probate and he also completed the UK Inheritance Tax Return.
My husband owned a house in the UK in his sole name. In his Will, I was the sole beneficiary of the entire Estate, including the house.
We finally received Probate (in December) and the house is now on the market for sale. Technically, it now belongs to me now as Probate has been granted and the Executor (our daughter who lives in the UK could transfer title to me) but I have not yet registered it in my name.
My question is: is it better for the Estate to sell the house and just distribute the proceeds to me? Or, should I transfer the title into my name and then sell it myself? Cap Gains will be negligible or nil as the house is being sold at below market value (I want a quick sale).
What do I need to consider to minimize or negate an US taxing issues?
My husband died last year. I had a UK attorney file for Probate and he also completed the UK Inheritance Tax Return.
My husband owned a house in the UK in his sole name. In his Will, I was the sole beneficiary of the entire Estate, including the house.
We finally received Probate (in December) and the house is now on the market for sale. Technically, it now belongs to me now as Probate has been granted and the Executor (our daughter who lives in the UK could transfer title to me) but I have not yet registered it in my name.
My question is: is it better for the Estate to sell the house and just distribute the proceeds to me? Or, should I transfer the title into my name and then sell it myself? Cap Gains will be negligible or nil as the house is being sold at below market value (I want a quick sale).
What do I need to consider to minimize or negate an US taxing issues?
Mar 22nd 2024, 8:12 pm
#2
Furby
Joined: Apr 2016
Location: St. Louis, MO.
Posts: 874
Re: Selling a home in the UK
An inheritance will be tax free (so long as it is not within a trust) therefore I would keep simple and have the estate sell it. Putting it into your name is an unnecessary added step and although you are thinking there will be no capital gains, if it is in your name and you happen to sell above the value on the date of your husbands death then there would be capital gains, might as well keep it simple and avoid that possibility. Plus if in your name you would need a formal valuation to back up the value upon the date of death.
Mar 22nd 2024, 10:15 pm
#3
Just Joined
Thread Starter
Joined: Mar 2023
Posts: 24
Re: Selling a home in the UK
An inheritance will be tax free (so long as it is not within a trust) therefore I would keep simple and have the estate sell it. Putting it into your name is an unnecessary added step and although you are thinking there will be no capital gains, if it is in your name and you happen to sell above the value on the date of your husbands death then there would be capital gains, might as well keep it simple and avoid that possibility. Plus if in your name you would need a formal valuation to back up the value upon the date of death.
Mar 24th 2024, 11:40 am
#4
BE Enthusiast
Joined: Nov 2012
Posts: 902
Re: Selling a home in the UK
The estate is a specified foreign financial asset, Distributions from the estate - whether in cash or in specie are reported on Form 3520. Unless your solicitor thinks differently, I'd have estate sell it - my query here is whether the estate may become liable for CGT on any gain. I'd discuss with the solicitor.
