House selling if the owner dies...

wibbler

Bit of a morbid (and slightly shallow) question:

We are in the middle of selling my 94-year-old grandmother's house (about £835000). We have a buyer, and the process of buying is in motion. However, she has recently taken a turn for the worse, and is now in a coma in hospital. Here comes the insensitive but necessary question - if she dies before the sale completes, is the sale null and void? Does inheritance tax rear its ugly head? If the sale goes ahead and she dies, who owns the house in the interim?

Toto

I have no idea to be honest, but I did want to say I'm sorry your grandmother is ill. I hope it all works out the best for you all. I don't think it's shallow to ask this, I think it's sensible to find out what the process will be now, at least then, if the time comes you'll have one less thing to worry about.

I would phone her solicitor and ask what happens, it'll give you the answers you need and he/she will be fully in the picture.

amcluesent

>(about £835000)...now in a coma in hospital.<

Yikes! Unless Gran agreed to Enduring Power of Attorney (http://www.guardianship.gov.uk/theservice/enduringpower.htm) while she was able to I think you're in a pickle as no-one can act on Gran's behalf on the house sale etc. You can start proceedings to appoint a Receiver, but it's a long process to get the medics to agree.

If she passes on without regaining conciousness, the estate's executor will handle financial affairs (if she's made a will). IHT is payable at 40% on net assets above £300,000 so unless Gran did some IHT planning, be prepared to write Gordon a very big cheque