Mum passed intestate, need to change name on house

nom_de_plume

MotownFox wrote: »

I would try and interest your step father in my earlier suggestion of a Deed of Variation, giving him a full life interest in the property, particularly if he wants to stay in the house and you are happy for him to do so (which you already have said you are)

As he has no family to lose out you are not going to get problems from that quarter. Also if say he had to go into care at a later date the house would not be his so would not therefore have to be sold to pay for such care.

Unless the property value shoots up there will be no IHT as there are very few assets in his name you mentioned. So on his death the property can then be sold and the proceeds split after expenses between whoever is entitled then (you and your brother at the moment)

Of course all parties you, your brother and your step dad would have to agree to such an arrangement taking place and as such will have to sign the deed which the Solicitor will prepare, at a nice price no doubt.

The problem I see with this is that he could indeed need to go into care at some later point in his life and, without his own funds to pay for it, may have to accept a much lower standard of care than he could have otherwise afforded.

skizz_b

Fire_Fox wrote: »

It's not as simple as him just refusing to inherit, if he has no assets how is he supporting himself now and in the future? Google deprivation of assets. Sorry to be harsh but your mother should have prepared a will the second she was diagnosed and preferably prior to that, she has left a right mess.

Well done Captain Hindsight, I'll go and tell her to do a will now...

skizz_b

Just to keep you in the loop on the situation, we met with Solicitors last week and have an agreement in principle to equally divide the house between myself, my brother and my step father. This includes an agreement to sell the house in five year's time.

The question now, is...what inheritance tax is due?

dzug1

skizz_b wrote: »

Just to keep you in the loop on the situation, we met with Solicitors last week and have an agreement in principle to equally divide the house between myself, my brother and my step father. This includes an agreement to sell the house in five year's time.

The question now, is...what inheritance tax is due?

Probably none - that looks like £150K each. The widower's share bears no tax, and the other two shares add up to below the threshold

Not sure about the effect of the sale in 5 year's time though.