What good is a will?

DBigelbach · 19 April 2017 at 5:58AM

My parents told me that they have a will and that I am named the executor. My mother has since passed away. My sister tells me that we need to have our father sign his house over to us in order to avoid probate.

I hesitate to do this because of the way my sister and her husband treated his mother when she signed her house over to them and then later wanted to sell. They told me they would not allow her to sell unless she bought them out first. I do not trust them but really don't know if there is some common sense in doing this. I just want things to be done fairly and rightly by my father and to do whatever he and my mother planned for.

What I am wondering is "What good is a will if you still have to go through probate?" and "Are the costs of probate really so high that it is worth having him sign his house over to us"? Everything but his house has beneficiary's listed so they would be excluded from probate anyway right? Would it really cost that much if his will outlines who gets what and we just inherit the house outright instead of him signing it over?

Browntoa · 19 April 2017 at 6:22AM

You have to account for ALL assets , including the house , as executor

Normally on death your mum's share of the house automatically goes to your father , a simple form to the land registry with a copy of the death certificate.

It's nonsense for them to say it needs transferring over

Refuse

Yorkshireman99 · 19 April 2017 at 6:50AM

DBigelbach wrote: »

My parents told me that they have a will and that I am named the executor. My mother has since passed away. My sister tells me that we need to have our father sign his house over to us in order to avoid probate.

I hesitate to do this because of the way my sister and her husband treated his mother when she signed her house over to them and then later wanted to sell. They told me they would not allow her to sell unless she bought them out first. I do not trust them but really don't know if there is some common sense in doing this. I just want things to be done fairly and rightly by my father and to do whatever he and my mother planned for.

What I am wondering is "What good is a will if you still have to go through probate?" and "Are the costs of probate really so high that it is worth having him sign his house over to us"? Everything but his house has beneficiary's listed so they would be excluded from probate anyway right? Would it really cost that much if his will outlines who gets what and we just inherit the house outright instead of him signing it over?

Your sister is trying it on! Probate is simply the legal process that gives effect to the will. remember that the will deals with all assets not just the property. How much is the house worth? Unless your father survived seven or more years from the date of gift Probate would probably be required anyway as the value of the gift would still added to the estate value and be included in the probate value. There are also potential problems if he required care as it could be regarded as deprivation of assets. Definitely refuse.

Malthusian · 19 April 2017 at 8:26AM

Yorkshireman99 wrote: »

Your sister is trying it on!

...again.

Did she/they really get her mother-in-law to give them (part of?) the house, then demand that she give them money to buy back the share in the house she gave them for free?

Keep_pedalling · 19 April 2017 at 9:29AM

This is nothing to do with avoiding probate and everything to do with greed. Your sister sounds a right piece of work, and your father should under no circumstances do this.

If he has made you his executor and not your sister then it sounds like he does not trust her, so hopefully he will not be easily persuaded.

Mojisola · 19 April 2017 at 10:14AM

DBigelbach wrote: »

My parents told me that they have a will and that I am named the executor. My mother has since passed away.

Have you dealt with your mother's estate yet?

Voyager2002 · 19 April 2017 at 11:39AM

Just for the record, probate costs a couple of hundred pounds now and is going to be made free for smaller estates. So the cost of probate is really not a significantly large issue to form the basis for major decisions.

What your sister apparently told you is nonsense. Probate may or may not be necessary depending on the value of your late mother's estate: if you need probate then that fact will be very obvious once you start dealing with your late mother's bank accounts and things.

Perhaps what your sister meant was that in the future, when your father eventually dies, the value of his estate (and hence the need for probate and the amount of inheritance tax that might be payable) would be reduced if he no longer owned a home. However, there are many reasons why he might be foolish to give away his home.

Keep_pedalling · 19 April 2017 at 12:50PM

Voyager2002 wrote: »

Just for the record, probate costs a couple of hundred pounds now and is going to be made free for smaller estates. So the cost of probate is really not a significantly large issue to form the basis for major decisions.

What your sister apparently told you is nonsense. Probate may or may not be necessary depending on the value of your late mother's estate: if you need probate then that fact will be very obvious once you start dealing with your late mother's bank accounts and things.

Perhaps what your sister meant was that in the future, when your father eventually dies, the value of his estate (and hence the need for probate and the amount of inheritance tax that might be payable) would be reduced if he no longer owned a home. However, there are many reasons why he might be foolish to give away his home.

Just signing over the house does not avoid IHT, as it would be counted as a gift with reservation, so never fall out of his estate. It would not work for avoiding care costs either as it would clearly be a deliberate deprivation of assets, which is probably where your sister is coming from.

What good is a will?

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