Financial Times Guide to Inheritance Tax, Probate and Estate Planning

238 Part 4

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When probate has been granted

Tax planning

The two examples above give food for thought on how to structure the sales

of land and property or qualifying shares. If there is a drop in the value of

the land or property, ensure this is sold within four years of death to enable

the claim to be made. If there are several properties, give careful considera-

tion to whether the claim is benecial, as all of the revised values will be

amended, not just the one that has reduced in value.

If there is more than one shareholding and only some of them have fallen

in value, consider whether the claim is benecial, as shown by the example

above. One way to plan around this is to sell the shareholdings that have

fallen in value within the rst year of death, to make the claim. Any share-

holdings that have grown in value can be sold outside the twelve-month

period, and be excluded from the calculation. The investment prospects

and other practical matters of the administration also have to be taken

into account.