Council tax exemption post probate question

Trapdoor

Had a letter today from my mums council regarding the council tax on her house, stating that it will be exempt from council tax during probate, and then for up to 6 months after probate, to the point the property is sold to transferred to a new owner.

My question is that as the only beneficiary, post probate don't I become the new owner and then have to start paying Council Tax? The house will need major modernisation before being sold which I won't start until the grant. As the Executor, can the house still remain under the estate until renovated and marketed to avoid paying council tax? As usual, the council are a bit ambiguous...

trulys

No, you won't pay Council tax before the Probate is granted.

Here's some blurb from one Council's website, and no doubt yours is the same...

If the property was owned by the deceased and is unoccupied, while it hasn’t been sold or transferred, it will be exempt from charges until probate is granted and for up to six months after that date if it remains unoccupied.

If the property remains unoccupied and unfurnished, six months after probate was granted, the full rate of council tax becomes payable from the deceased’s estate.

If the furniture was removed after the probate date, the full rate of council tax only becomes payable six months from the date the property became unfurnished.

Ring the Council for 100% reassurance, but the above is certainly how things are with my father's house - he died end of April, I obtained Probate 17 July, so our exemption runs until 17 January, by which time hopefully we'll have sold the property!

troubleinparadise

Some councils allow exemption for an unfurnished house being renovated/having building works done upon it - which would be in addition to any deceased estate/probate exemptions. Check what your council's rules are.

The transfer of title after probate can take some time - it doesn't necessarily have to be done immediately probate is granted. I don't believe there is a rule that says these things have to be done straight away. It may be that there are still outstanding financial issues that need to be sorted after probate that might hold up the final distribution to the beneficiaries, including the transfer of title. Only you would know how long that might take.

But yes, once the title is transferred, the new owner becomes liable for council tax, and any post-probate exemption is nullified.

Fire_Fox

Even if you become the owner if the house is uninhabitable (empty of furniture) you would still be entitled to an exemption of up to six months.

daska

I didn't think rules varied by Council at the moment but I have just received a consultation letter through from mine explaining that they're planning to axe the exemption and replace it with a discount for a shorter period. I can't off hand remember when this change comes about but it might be worth bearing in mind and finding out.

Trapdoor

Thanks for the info.

We have received a letter from the council after visiting the registrar who completed a 'Tell us Once' submission, which included a council tax statement giving us dates when the tax free period starts and ends, plus a partial rebate which will go to the estate account.

The end date is a bit odd as it isn't 6 months, but ends 31 March 2013 which I assume is the end of the council tax year.

Very surprised at how 'efficient' her council have been ... Not like our local council.