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  • FIRST POST
    • Gstewart
    • By Gstewart 13th Mar 17, 11:18 AM
    • 3Posts
    • 1Thanks
    Gstewart
    Help to Buy ISA question?
    • #1
    • 13th Mar 17, 11:18 AM
    Help to Buy ISA question? 13th Mar 17 at 11:18 AM
    Hello,


    Unfortunately my father passed away in 2016. Myself and my Brother are the beneficiaries. However it's a 1/4 share of the house, other 1/4 my brothers and the other half my mothers.


    I recently received some death in service benefit from my fathers former employer.


    I know help to buy ISA's don't apply to those who either have bought a house (not me) or have an inheritance in a residential property (I guess I do?)


    However the executors have not applied for probate yet. So technically the will has not been read yet..


    Would I be able to open up a help to buy ISA? I'm only 23 and it would be a shame if I missed out on this. Can someone help clarify or point me in a direction to get advice?
Page 1
    • Heather2603
    • By Heather2603 13th Mar 17, 11:44 AM
    • 59 Posts
    • 69 Thanks
    Heather2603
    • #2
    • 13th Mar 17, 11:44 AM
    • #2
    • 13th Mar 17, 11:44 AM
    Are you planning on buying anytime soon? If not I'd wait a few weeks and open up a lifetime ISA instead. You can use it towards a deposit(H2B ISA can only be used at completion) only downside is it needs to be open for 1 year before you can use it towards a house.
    • da_rule
    • By da_rule 13th Mar 17, 12:23 PM
    • 2,318 Posts
    • 2,085 Thanks
    da_rule
    • #3
    • 13th Mar 17, 12:23 PM
    • #3
    • 13th Mar 17, 12:23 PM
    You cannot use a Help to Buy ISA if you have or have ever had an interest in property anywhere in the world.

    The executors do not need to apply for probate, there are some situations wheee it is not needed.
    • silvercar
    • By silvercar 13th Mar 17, 12:26 PM
    • 34,989 Posts
    • 147,621 Thanks
    silvercar
    • #4
    • 13th Mar 17, 12:26 PM
    • #4
    • 13th Mar 17, 12:26 PM
    Quarter of the house or quarter of the proceeds of the sale of the house? If it is the former you could maybe alter the will with all beneficiaries' consent.

    You could also agree to forego your inheritance in favour of a named person if you so wish.
    • Gstewart
    • By Gstewart 13th Mar 17, 12:34 PM
    • 3 Posts
    • 1 Thanks
    Gstewart
    • #5
    • 13th Mar 17, 12:34 PM
    • #5
    • 13th Mar 17, 12:34 PM
    My mum intends to sell the house, she has little left on the mortgage as thankfully my father paid off most of the mortgage with a life insurance payout when he was diagnosed as terminal.


    My question is, as the executors (fathers parents) have done nothing for the past 6 months, let alone apply for a grant of probate, am I currently eligible to open a Help to buy ISA?
    • da_rule
    • By da_rule 13th Mar 17, 12:36 PM
    • 2,318 Posts
    • 2,085 Thanks
    da_rule
    • #6
    • 13th Mar 17, 12:36 PM
    • #6
    • 13th Mar 17, 12:36 PM
    You can open one, it's whether you will be eligible to claim the bonus that will be the issue.

    As has been said, it's the wording of the will that's important. If it leaves you a share of the house then you own a share of the house. The will becomes effective as soon as the person dies.
    • Gstewart
    • By Gstewart 13th Mar 17, 12:41 PM
    • 3 Posts
    • 1 Thanks
    Gstewart
    • #7
    • 13th Mar 17, 12:41 PM
    • #7
    • 13th Mar 17, 12:41 PM
    The will says:


    To pay the residue ("my residuary estate") to those of my sons [Brothers name] and [My name] who survive me and if more than one in equal shares absolutely.


    It doesn't mention anything specifically about leaving the house.
    • da_rule
    • By da_rule 13th Mar 17, 12:44 PM
    • 2,318 Posts
    • 2,085 Thanks
    da_rule
    • #8
    • 13th Mar 17, 12:44 PM
    • #8
    • 13th Mar 17, 12:44 PM
    So why do you think you're inheriting a share in the house?

    If your mum and dad owned the house as joint tenants then the house will pass to her automatically outside of the will.

    If it was owned as joint tenants then the shares could be transferred under the will but it would be unusual to do this via a residuary clause.
    Last edited by da_rule; 13-03-2017 at 12:55 PM.
    • pizzawithcheese
    • By pizzawithcheese 13th Mar 17, 12:46 PM
    • 5 Posts
    • 2 Thanks
    pizzawithcheese
    • #9
    • 13th Mar 17, 12:46 PM
    • #9
    • 13th Mar 17, 12:46 PM
    I read this...

    'I have property in a trust, do I still qualify as a first time buyer?
    If you have or had an ongoing beneficial interest in a residential property via a trust, (including a trust created by a will or divorce), then you are not a first time buyer.

    However, you are still a first time buyer if:
    (a) you are named as a beneficiary of residential property in the will of a person who is still living; or,
    (b) if the trust to which you are or were a beneficiary was only created for the purpose of selling the property and other assets following a death or divorce, and the title of the residential property was never transferred to your name or to a trust which you are an ongoing beneficiary; or
    (c) if you are only acting in a trustee role and will not be entitled as a beneficiary in the future, (and do not have any other interests in residential property).'

    And assumed (I am in a similar case to you) that by clause b because the property was never in my name and the trust was only created to sell the house - that you are eligible.

    However I'd like some other opinions on this clause...
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