Inheritance tax question

karenwillo

Hi

I wonder if anyone could help me understand what happens in this situation - my parents have a buy to let property which has a small mortgage on it in both names. The house itself was transferred to my mum's name a little while ago as she has a lower income tax threshold. My dad died in June and we are trying to value his estate for probate. Would the mortgage be counted as a debt against his name even though he took no income from the property and didn't own it?

Many thanks in advance if anyone can help me

dzug1

It's odd that he has a mortgage on it if he didn't own it and that it wasn't changed at the time of the transfer.

If it is still in joint names then logically I would expect that half the mortgage is a debt against his estate.

Savvy_Sue

Have you checked whether there was any insurance which would kick in and pay off the whole of the mortgage following your dad's death?

CLAPTON

have you actually checked what the deeds say as it's strange for the lender to allow the transfer of ownership without also changing the names on the mortgage?