what happens to house?

Rekw2000

What happens to the house of deceased parents when they die?
There is no will.
There is me and my brother?
What happens if my dad had signed the mortgage over into my brother's name before he died?
Thank you.

DUTR

Rekw2000 wrote: »

What happens to the house of deceased parents when they die?
There is no will.
There is me and my brother?
What happens if my dad had signed the mortgage over into my brother's name before he died?
Thank you.

That doesn't tally with another of your posts which included "Ok, I currently live and work in Qatar, but will be coming back in 1 year.....I am from Staffs and have a house there that I rent out, my elderly parents live there, so would like to be near them, and friends."

[Deleted User]

Hi,

I don't think he can just 'sign the mortgage over to your brother'.

There will be legalities to be sorted out, what if your brother can't afford to pay the mortgage?

-taff

Your parents could have signed the house over to him and he could have taken out a mortgage on it, but if they still live there he is their landlord.

You can't sign a mortgage over as has been said.

No will, with your brother owning the house and paying a mortgage on it means it's his house.

Any other assetts get divided according to inheritance law. Also, if he sold it to your brother by gifting any part of it, i.e. your brother didn't buy the house for the full market value, and your parents died before 7 years were up, he will have to pay IHT on it.

Keep_pedalling

-taff wrote: »

Also, if he sold it to your brother by gifting any part of it, i.e. your brother didn't buy the house for the full market value, and your parents died before 7 years were up, he will have to pay IHT on it.

Wrong. For starters the estate would only be subject to IHT if it was actually over the nil rate band, and secondly the bill would be met by the estate not the brother. Only if there was insufficient assets left in the estate to pay the bill would there be any claw back of gifts.

Brighty

DUTR wrote: »

That doesn't tally with another of your posts which included "Ok, I currently live and work in Qatar, but will be coming back in 1 year.....I am from Staffs and have a house there that I rent out, my elderly parents live there, so would like to be near them, and friends."

I assumed by that that his parents lived in Staffs, so he would like to live near them, not necessarily that they live in his Staffs house

da_rule

As has been said there are two options here:
1) They have signed the house over to him in which case he is the owner. If they've continued to live there and are not paying rent then it could be a gift with reservation of benefit. If they gifted him the house (he didn't pay market value for it) then this would be gift for the purposes of IHT. Both of these only matter if their estate is worth more than the IHT threshold.
2) They haven't signed it over to him - the property would pass to you and your brother in equal shares (unless a will states otherwise).

-taff

Keep_pedalling wrote: »

Wrong. For starters the estate would only be subject to IHT if it was actually over the nil rate band, and secondly the bill would be met by the estate not the brother. Only if there was insufficient assets left in the estate to pay the bill would there be any claw back of gifts.

Oops, meant the estate....