Inheriting a house and wanting to transfer to a daughter

DJP_2

My Mother in law has inherited a house from her Father in law , no monies owed on the house , and she wants to transfer the house into their names (or one of their names) , is it a lengthy or costly process to do this ??

Many thanks in advance.

go_cat

Is she wanting to do this to avoid losing any benefits?

DJP_2

No she has her own house and don't receive any benefits , the inherited property is of no use or interest to her , it's in a rack & ruin state and she just wants to hand it over to her daughters ( which was their Grandads wishes but never got to change his will in time) .

Mojisola

Do the daughters have the means to repair it? If not, it might be best to sell it at a knock-down price and share the money out.

DJP_2

Yes , one daughter will be paid her half by her mother (she has the funds to do that) and the other (my missis) would be far better off financially if we sold our house and pay to do the inherited property up , bigger house half the mortgage infact.

CLAPTON

it is relatively straight forward to transfer a property

two main ways in the circumstances

-a deed of variation of the will; this means the property is left directly to the grandchild which may avoid IHT if the mother in law should die within 7 years
This must be done within two years of the grandfather's death

-just give the house: this can be done yourself via the land registry or by using a solicitor : however if the mother dies with 7 years this could potentially incur IHT

and of course the property could simply be sold and the money gifted to the grandchild; again if the MIL dies withon 7 years there would potentially be IHT liability

Bettie

DJP wrote: »

My Mother in law has inherited a house from her Father in law , no monies owed on the house , and she wants to transfer the house into their names (or one of their names) , is it a lengthy or costly process to do this ??

Many thanks in advance.

Phone the Land Registry and ask for the correct forms for that transfer. They were brilliant at helping me out recently.
I paid £50 for an assent on an inheritance and £75 for a transfer with another house, it depends on house value and type of transfer.

G_M

DJP wrote: »

My Mother in law has inherited a house from her Father in law , no monies owed on the house , and she wants to transfer the house into their names (or one of their names) , is it a lengthy or costly process to do this ??

Many thanks in advance.

No, and no.

Call the Land Registry who will advise which forms to complete. They will not give legal, tax etc advise, but will talk you through the transfer process.

Mojisola

DJP wrote: »

Yes , one daughter will be paid her half by her mother (she has the funds to do that) and the other (my missis) would be far better off financially if we sold our house and pay to do the inherited property up , bigger house half the mortgage infact.

In that case, two issues to consider are 1. inheritance tax if your MIL should die within seven years of giving the house to her daughters and, 2. the authorities claiming it's been done to deprive your MIL of capital if she needs means tested benefits or care within the next few years.

SuzieSue

CLAPTON wrote: »

it is relatively straight forward to transfer a property

two main ways in the circumstances

-a deed of variation of the will; this means the property is left directly to the grandchild which may avoid IHT if the mother in law should die within 7 years
This must be done within two years of the grandfather's death

This is the best way to do it.