Death of 'Joint Tenant'

datostar

Am I correct in thinking the following in each case?

Situation 1: Father and daughter own a property as Beneficial Joint Tenants. Father dies and his share passes automatically to daughter and does not become part of his estate, except for IHT purposes. Neither does the outstanding debt on the joint mortgage become debt on the estate as presumably the joint tenant immediately becomes responsible for the entire mortgage too.

Situation 2: Father and daughter own as Tenants in Common. Father dies and his share becomes part of his estate, thus the responsibility of the executor who presumably, until everything is sorted out, should have his name placed on the Deeds/Registration. Proportion of outstanding mortgage is a debt on the estate.

getmore4less

[STRIKE]Fairly sure that 1 is correct,[/STRIKE]
woops, looks like you can have 1/2 the debt on joint assets
(see 15.2 and 15.5 on the IHT205 below)

Not 100% on 2.

I have been finding that working back trying to do a probate and a IHT return is a good way to find out the rules and what things you need to consider for eatate planning.

Start with forms PA1 and IHT205(IHT400 for the full estate info)
http://www.hmcourts-service.gov.uk/HMCSCourtFinder/GetForms.do?court_forms_category=Probate

http://www.hmrc.gov.uk/cto/forms/iht205-2006-2.pdf (form)
http://www.hmrc.gov.uk/cto/forms/iht206-2006-1.pdf (guidance notes)

Loads of usefull links on HMRC site if you have a look around.
http://www.hmrc.gov.uk/inheritancetax/iht-probate-forms/help-iht205-C5/joint-assets.htm#2

SmlSave

Situations 1 - correct

Situation 2 - prettty much correct. There's no need for the Executor to be placed on the Deeds (unless they wish) as they will have a Grant of Probate/Letters of Administration allowing them to deal with the estate and share of house. The Will should state what happens to the share of the house.

datostar

Thanks. I'll have to have a good look at the IHT 205 then.