Can a limited company be a benificiary in a will?

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    Can a limited company be a benificiary in a will?

    My elderly parents invested their fairly meagre incomes, lived frugally, and have ended up with 2 BTLs and the house they live in. Total value 900k, but down to 650k after mortgages paid off. With the RNRB we should be ok inheritance tax wise.
    My parents are at the low end of the 20% income tax band. There would seem to be no benefit to incorporating for them.
    I am a 40% tax payer and will be sole beneficiary of their estate... Which will be 3 BTLs including the house they live in. Or maybe 4 as they are really very good at saving!
    So having them in a limited company would seem useful for me. I would not need to worry about releasing equity (with resultant CGT payable by company and then myself), as my job is reliable and it's pay meets my needs. I would plan on just taking dividends, reinvesting into more BTLs, and passing it on to my children.
    With that situation in mind, I wondered how to avoid stamp duty when the company takes ownership... So can a limited company be a beneficiary and would this help avoid costs like this and others I might not be aware of.
    I would appreciate your advice, and if anyone knows any reliable Coventry, West Midlands solicitors or accountants who can help then please direct message me. I think posting a recommendation on the forum is against the rules that I just read (being a newbie).
    Thanks in advance to anyone who can help

    #2
    A large proportion of wills make gifts to companies, as most big charities are companies.

    I assume that there is no mortgage, as any will need to be paid off.

    Comment


      #3
      Thank you for the advice.
      There are mortgages. Would i be able to sell one property as executor during probate to pay the mortgages off?
      Also, why can't I arrange a mortgage to the l limited co. during probate. I was not aware they need paying off first.

      Comment


        #4
        Usually transfers of property under a will to the beneficiary will not require payment of sdlt . But you need legal advice from a solicitor for wills and IHT to ascertain if the beneficiary can be a limited company.

        https://www.gov.uk/applying-for-probate

        Comment

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        • Reply to Caught out by changes to Capital Gains Tax
          by AndrewDod
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          jpkeates
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