Talk

Advanced search

Mumsnet has not checked the qualifications of anyone posting here. If you have any legal concerns we suggest you consult a solicitor.

Undervalued Estate & Inheritance Tax

(6 Posts)
Ashes2015 Tue 16-Jun-15 00:19:16

I don't know what to do about this situation or whether I should mind my own business, I'm hoping that mumsnet will help me gain some clarity! I will try not to drip feed but equally I don't want to go into too much detail in case this outs me:

My friend,boho I'll call K, died suddenly in early 2014, she was declared Intestate and her son, my God son, obtained the grant of letters of administration and inherited the entire estate.

The estate itself is sizeable comprising a number of properties, cars, artwork, investments and jewellery. Initially my DGS asked for my assistance, along with that of his father, in valuing the estate.

In the days after she died I visited Ks house at the request of DGS and noticed that a number of artworks and personal items were missing. When I asked about them my questions were brushed off and I didn't press the issue as it was an emotional time for all of us.

DGS produced a schedule of assets and liabilities, looking at this I believed the estate had been undervalued considerably. Examples being:

Value of her jewellery being stated as £15K. K had an extensive collection and I was aware that one of her pieces alone was purchased for around this amount.

Chattels were valued as £8k. She had a number of artworks, antiques and ornaments, some of which were rare or collectible pieces, as well as furniture etc. even taking into account second hand values this figures seems way off.

K owned a number of properties which she rented out and had a large six bedroom home as her principal residence. The values did not look to be anywhere near the prices I would expect.

I attempted to discuss this with DGS and his father and at this point they both told me they did not want me involved any longer.

In the schedule of assets I was shown, the value of her principle residence was £550k, the property has recently gone on the market for £1.6 million and is now sold subject to contract.

I have always been close to DGS so part of me thinks I should just leave this well alone to avoid ruining our relationship but the other part of me believes that the estate has been undervalued by a significant amount. I'm not sure what to do, if anything

AlpacaMyBags Tue 16-Jun-15 02:43:15

Message withdrawn at poster's request.

Ashes2015 Tue 16-Jun-15 10:29:58

I am concerned, yes

ClashCityRocker Tue 16-Jun-15 10:33:24

Hmrc are likely to challenge the values if they seem way out. They will need to report what they sold the house for as CGT will be due on it, from the sounds of it. It could be a very costly mistake for them.

ClashCityRocker Tue 16-Jun-15 10:36:06

Or him, as the case may be.

How were the values arrived at?

OTheHugeManatee Tue 16-Jun-15 11:01:27

I would keep out of it. It's not your job to shop your godson to HMRC.

Join the discussion

Join the discussion

Registering is free, easy, and means you can join in the discussion, get discounts, win prizes and lots more.

Register now