So confused IHT - spouse and child

beckstar1975

Hello

I am sorry if this sounds like a stupid question but I can't find the answer anywhere.

My dad has died and left his estate jointly to his wife and I - the estate being a house that his wife and sister jointly own but they took out a deed of variation (I think it's called) about 10 years ago when he put a substantial amount of money into the house, that details the value at the time it was split and now it's value 15 years later.

Will IHT be calculated on the basis of the entire estate or only that which has not passed onto his wife (ie is due to me)? And while he left me his share of the interest of the value of the house can this be realised (ie would they be forced out to realise the value), does it even stand legally as he wasn't on the deeds at Land Registry, or is it academic only until they voluntarily decide to sell?

Wife wants us to apply for probate ourselves, I don't want to for reasons above, and chance of relationships breaking down irreperably.

Help! Any thoughts gratefully received, including just pay for it

getmore4less

What does the deed say that should document the situations for his share and beneficial interest at the time. if there was/is a mortgage that could complicate

He does not have to be on the land registry deeds to have a beneficial interest in the property.

Check carefully what the will and the deed say it may be quite straight forward to come to some agreement.

Anything that transfers to the spouse will get the spouse exemption.


you need to post more information from the deed and the will for people to add much more than say get professional advice, which you should do anyway if not confident in what needs doing even after people have given their opinions.

beckstar1975

Thanks - the deed mentions the value of the house as of the date of deed and that this value is split between the two sisters, and from that date forward the value of the house less this figure is to be split three ways. It's an annexe to the will too.

That really helps, thank you, I thought that without being on the LR deeds it may mean nothing (there was a small mortgage she was named on that has ended) but if it does it may be worth paying for the legal advice.

I think my union offer free legal advice so I'll speak to them, it may be it's worth executing ourselves but paying for advice as and when required.

Cheers