Have solicitors messed us up IHT or CGT

A question about : Have solicitors messed us up IHT or CGT

evening

wife and her 2 sisters got left a house in inheritance .

3 valuations done one week after death and average price was 315k .. 6 months later put it on market and estate agent marketed for 400k ... had offer of 400k so solicitor worked out our iht on this 400 figure .... sale fell through because valuation came back alot lower .. still on market a year after death and trying to sell ... should we be paying iht on 400 figure or should solicitor be saying zero iht on basis of price on death not price months after death. . That way they pay cgt not iht and can each use allowance and pay alot less tax overall... before i argue it out with solicitors just wanted to check im on right track ?

Best answers:

• If the estate has been settled and the valuation incorrect, then the IHT may be re-valued when the property is sold. CGT is inly applicable to you when you sell if the gain is above the original value of your ownership and after CGT allowance.
  Just need to get the solicitor to correct the valuation when the sale is made. This is not unusual, so don't be too concerned.
  Sam
• the 'correct' valuation is that at the time of death and not the value when sold.
  however, with property it isn't easy to determine.
  at this stage one would have thought the estimates at the time of death would be the one to use and not the value when sold
  HMRC can always challenge a valuation and get the district surveyor to provide a valuation.
  In your area can it reasonably be shown that prices have risen since the death?
• It is not selling at Ј400k, why not?
  It's been on 6 months in a rising market!
  What is a realistic price do your own research and as benificiaries tell the executors what price to market the property.
  There is a trade off on the ongoing costs of keeping it and just setting a sensible price and then getting the IHT adjusted.
  Was there no spouse transferable nil rate band?