Mum passed intestate, need to change name on house

RAS

skizz_b wrote: »

He doesn't own any sort of assets himself. The estate is pretty much the house.

In all honesty I believe he wants to respect my Mum's wishes and give the house to me and my brother, all of this is just a debate as to what would happen if he did the opposite.

The problem that you ALL face is that there is a substantial IHT liability that has to be paid within 6 months of the end of the month your mother died. If there is no cash in the estate that could be a big problem.

Who is obtaining probate??

skizz_b

RAS wrote: »

The problem that you ALL face is that there is a substantial IHT liability that has to be paid within 6 months of the end of the month your mother died. If there is no cash in the estate that could be a big problem.

Who is obtaining probate??

a solicitor has been employed to do this in my mum's husband's name.

we aren't intending to sell the house, didn't realise this still had to be paid?

RAS

See here http://www.hmrc.gov.uk/inheritancetax/intro/basics.htm

skizz_b

I was under the impression that, seeing as Mum didn't leave a will and by default it goes to her spouse, it qualified for spousal exemption.

skizz_b

RAS wrote: »

See here http://www.hmrc.gov.uk/inheritancetax/intro/basics.htm

Indeed, on that page it says:

Inheritance Tax exemptions and reliefs

Sometimes, even if your estate is over the threshold, you can pass on assets without having to pay Inheritance Tax. Examples include:

• Spouse or civil partner exemption. Your estate usually doesn't owe Inheritance Tax on anything you leave to a spouse or civil partner who has their permanent home in the UK - nor on gifts you make to them in your lifetime - even if the amount is over the threshold.

rpc

skizz_b wrote: »

we aren't intending to sell the house, didn't realise this still had to be paid?

The taxman always gets paid.

You have two options if there is not enough cash in the estate to cover the IHT:

1. Pay it yourselves using savings
2. Sell the house, pay the tax and then distribute the proceeds according to the rules of intestacy

Fortunately, you are not liable for the IHT - that is for the administrator (stepdad) to deal with from the estate. After six months, HMRC will get grouchy. You don't really want HMRC to get grouchy.

You can pay by installments - 10% by six months and then either a lump sum or further installments (with interest). see http://www.hmrc.gov.uk/inheritancetax/paying-iht/yearly-instalments/

RAS

Srory forget she was married, not partner. You need to double check whether this applies in intestacy, but bear in mind that if the house goes to you children, then you will have to pay IHT.

skizz_b

RAS wrote: »

Soory forget she was married, not partner. You need to double check, but bear in mind that if the house goes to you children, then you will have to pay IHT.

No problem, I'm sure the solicitor will be aware but will ensure this is checked.

So the essence is, if at any stage the house is transferred into the name of myself and my brother, we owe inheritance tax on it? Even in the future?

pauletruth

just checking does your mums husband have children.

you would like her husband to be homeless. if your mum had wanted you 2 to get the house then she would have written a will. if husband dies and has his own children your looking at getting very little.

skizz_b

pauletruth wrote: »

just checking does your mums husband have children.

you would like her husband to be homeless. if your mum had wanted you 2 to get the house then she would have written a will. if husband dies and has his own children your looking at getting very little.

I'm going to deal with this in a very straightforward manner.

My Mum DID want to write a will, but unfortunately when cancer decides it is going to take you it does. My Mum didn't have the strength to lift a pen to sign anything by the time we realised a will hadn't been written, so don't make callous remarks when you have absolutely no basis to do so.

Secondly, I do not want my Mum's husband to be homeless, I have not once said that I want to sell the house, I said I want the names of myself and my brother on the house as was her wish. How you managed to get "you would like her husband to be homeless" from that, I don't know. I am happy for him to live there as long as he wants, it doesn't bother me.

Thirdly, he does not have any children. You could easily had said the first and last sentence without the flagrant, pointless remarks in the middle. Think before you type.