Probate and Declaration of Trust
Options
jeffrey1111
Posts: 3 Newbie
Hi, I'm looking for some advice following the recent death of my grandfather.
When my Grandmother passed away 15 years ago he placed his house in trust to myself and my brother.
Land registry title deeds show all 3 of our names as proprietors (Grandfather, myself and brother).
Following his passing I understand that we should complete form DJP to remove his name from the title deeds.
First of all, is this correct? Secondly, does this mean we can sell the house or do we need to take it out of trust? And finally if we're already named on the title deeds do we need to apply for probate?
Many Thanks Jeff
When my Grandmother passed away 15 years ago he placed his house in trust to myself and my brother.
Land registry title deeds show all 3 of our names as proprietors (Grandfather, myself and brother).
Following his passing I understand that we should complete form DJP to remove his name from the title deeds.
First of all, is this correct? Secondly, does this mean we can sell the house or do we need to take it out of trust? And finally if we're already named on the title deeds do we need to apply for probate?
Many Thanks Jeff
0
Comments
-
You won't need probate to deal with the house you may for other reasons.
You will still have to deal with any HMRC tax requirements.0 -
You will need to deal with winding up the trust. This will almost certainly involve paying CGT on the gain in value. Not a job you can sensibly DIY. You need to get professional advice from a solicitor who is a STEP member.jeffrey1111 wrote: »Hi, I'm looking for some advice following the recent death of my grandfather.
When my Grandmother passed away 15 years ago he placed his house in trust to myself and my brother.
Land registry title deeds show all 3 of our names as proprietors (Grandfather, myself and brother).
Following his passing I understand that we should complete form DJP to remove his name from the title deeds.
First of all, is this correct? Secondly, does this mean we can sell the house or do we need to take it out of trust? And finally if we're already named on the title deeds do we need to apply for probate?
Many Thanks Jeff0 -
What type of trust?
Was it the whole house?
If a life interest trust there could well be no CGT issues as the value of the house remains part of the Estate and thus could be liable for IHT.0 -
Declaration of trust? Split 50/50 once he died.
House value approx £100,000.
Thanks0 -
Did he retain the right to live in the place?0
-
Yes he retained his right to live there.0
-
jeffrey1111 wrote: »Hi, I'm looking for some advice following the recent death of my grandfather.
When my Grandmother passed away 15 years ago he placed his house in trust to myself and my brother.
Land registry title deeds show all 3 of our names as proprietors (Grandfather, myself and brother).
Following his passing I understand that we should complete form DJP to remove his name from the title deeds.
First of all, is this correct? Secondly, does this mean we can sell the house or do we need to take it out of trust? And finally if we're already named on the title deeds do we need to apply for probate?
Many Thanks Jeff
Form DJP plus an official copy of the death certificate will update the register re the death. If you intend to sell then there is no need to update the register beforehand. Just let the buyer have an official copy of the death certificate.
If it was in three names then the legal ownership has passed to the surviving two so you can sell and take 'receipt of the capital monies' - I quote those words as I assume there is a form A restriction on the title to protect the trust and which refers and restricts a sole surviving owner for example selling on their own.
As getmore4less states you don't need probate to deal with the legal ownership of the property but may need it to deal with the his wider estate.“Official Company Representative
I am the official company representative of Land Registry. MSE has given permission for me to post in response to queries about the company, so that I can help solve issues. You can see my name on the companies with permission to post list. I am not allowed to tout for business at all. If you believe I am please report it to forumteam@moneysavingexpert.com This does NOT imply any form of approval of my company or its products by MSE"0 -
jeffrey1111 wrote: »Yes he retained his right to live there.
Read up on life interest/interest in possession trusts.
The rules for these changed in 2006 so be aware when reading you will se things like immediate post death that referes to the later rules.
Unless there is something unusual(worth passing by a solicitor if not sure) this could be quite straight forward.0 -
getmore4less wrote: »Read up on life interest/interest in possession trusts.
The rules for these changed in 2006 so be aware when reading you will se things like immediate post death that referes to the later rules.
Unless there is something unusual(worth passing by a solicitor if not sure) this could be quite straight forward.
There isn't an IHT issue at £100k, so the question is whether there is a CGT issue, presumably.0 -
Given the OP's lack of knowledge of trusts and taxation he would be mad not to get professional advice before doing anything.getmore4less wrote: »Read up on life interest/interest in possession trusts.
The rules for these changed in 2006 so be aware when reading you will se things like immediate post death that referes to the later rules.
Unless there is something unusual(worth passing by a solicitor if not sure) this could be quite straight forward.0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards