inheritance help for my brother

sharynm

sorry this is a bit of an epic but i'm trying to help my half brother out with some information.

My father died 8 years ago this month. He had two previous children with his first wife (myself and my older brother). He was married to his second wife for 40+ years (and had one son my half brother)
When my father died, my step brother who lived with our parents and was doing so when my father died (it was his main residence) continued to live with his mum. After some time it became apparent that she herself was ill. approx 5 years ago she went into residential care, we paid all the funding for the 5 years from the her money. My brother continued to live in the house. approx 2 years ago he moved away so the house has been empty for a couple of years. We always knew the details of the wills as dad let us know before he was ill.

house to go to my half brother
any remaining money was to be split three ways.

We didn't actually expect any funds to be left after care but there is some apparently, we are just going through probate now and we think there is the house (225k just valued but down in value since my father died and 200k money

my main question is my fathers left everything to my stepmum and then the above was to happen on her death but approx six and a half years ago she gifted half the house to my half brother, arranged through her brother) but my half brother doesn't remember anything about it, doesn't have any paperwork and didn't sign anything. He is about to go online with land registry and find out who actually owns the house. I'm pretty sure half was gifted to him as I remember something about it and a Solicitor did go out to see my dad's wife. I think it may have been the wrong thing to do anyway as it didn't reach the seven years. Will he know have to pay money on the gift due to the length of time?

The three of us never received any money gifts from our parents all our lives so they haven't tried to move any money around etc. not sure if this makes a difference to the estate?

xylophone

First check the details of ownership at the Land Registry.

Your stepmother was sole owner of the property after your father's death.

Her will left her interest in the property to her son.

Several years before she died (it is thought ), she gifted him a half share in the property.

This does not invalidate the gift in her will - it leaves him her interest and he now becomes sole owner.

With regard to whether any IHT is due, quite possibly not - she had her own IHT allowance and possibly her late spouse's and some family home allowance - your solicitor/ the executor will check and advise.

If your brother wishes to sell the property, he may need to look into the CGT position if he did own a half share but there may not be any liability as until two years ago it was his PPR.

https://www.gov.uk/government/publications/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band

https://www.gov.uk/tax-sell-home


https://www.clarkewillmott.com/news/wills-inheritance-tax-and-adult-children-living-at-home/

sharynm

that's great advice and thanks very much, I'll pass on the information to him.