Selling parents house - splitting/sharing money

mattbell1975

Hi my step dad wants to sell my mums (died 10 years ago) house as he can't afford to run it, he is in a care home which he can cover costs before the sale but can't afford to run the house, insurance etc and split the sale money 3 ways with myself, brother and stepdad having a third equal share after sale costs etc. The house is paid for with no mortgage.
How do we go about this?
What is there to look out for?
Taxes etc?
House worth around £325k
This is totally his idea, we're not making him homeless as it was originally my mums house paid for in a divorce settlement from my dad and he wants us to have a share of what was her house.
Thanks in advance

p00hsticks

Whose name is the property in ?
Is your step-dad mentally competent (not suffering form dementia etc or anything) ?


If the house is soley in your step-fathers name then it's going to have to be him who instructs an estate agent & solicitor and completes all the legal paper work unless someone else (you or your brother ?) has or gets Power of Attorney to act on his behalf. even if it's already owned three ways between the three of you he'll still need to be involved in the legal process.

How long has your stepfather been living in the care home ?
If it was previously his main residence, he's the owner and he only recently moved out there won't be any taxes to pay, and once the house is sold he can simply give you and your brother a share of the proceeds, although if he dies within 7 years the money he gives away would still form part of his estate for Inheritance Tax purposes. And if he runs out of money to provide for his care then the Local Authority may consider the gift as 'deprivation of assets' and come looking to you for his continued care home costs.

If and your brother already part own the house but have not been living in it then there may be some Capital Gains Tax to pay on your shares when you sell.

sparky130a

mattbell1975 wrote: »

Hi my step dad wants to sell my mums (died 10 years ago) house as he can't afford to run it, he is in a care home which he can cover costs before the sale but can't afford to run the house, insurance etc and split the sale money 3 ways with myself, brother and stepdad having a third equal share after sale costs etc. The house is paid for with no mortgage.
How do we go about this?
What is there to look out for?
Taxes etc?
House worth around £325k
This is totally his idea, we're not making him homeless as it was originally my mums house paid for in a divorce settlement from my dad and he wants us to have a share of what was her house.
Thanks in advance

You/He need a good solicitor.

Whilst great, this forum can't possibly answer all your questions and the nuances associated.

00ec25

once you tell us who owns the property and what their shares are (if more than one owner) then we can start to give meaningful answers, rather than us write out scenarios that may not be relevant

G_M

As above:

* when mum died, did she leave a will? Who was the Executer(s)
* if no will, who applied for Administration?
* was Probate granted?
* into whose name(s) was the property transferred?
* who inherited the rest of her estate? Was Inheritance Tax due? Was it paid?
* does step dad have mental capacity?
* does anyone have POA for step dad?

Potential taxes, depending on answers, are

* inheritance tax (maybe overdue on mum's estate)
* inheritance tax on step dad's estate if/when he dies
* capital gains tax

Blue_Max_2

When he sells the house the money will be in his name and his bank account. That may impact on any state support he gets for his care.
May be better to just leave it in his will.
Either way I would get a solicitor.

G_M

I think Matt has long since moved on.