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Selling Inherited House
gryphon
Posts: 80 Forumite
Hi, hope this is correct place to put this.
My dad is about to inherit a house. At his age he says he’s not relay wanting the hassle, so his intention at the moment is to sign the house over to my brother and myself. Nearer the time will be seeking independent solicitor advice on the best route to go.
Is he better signing over to us or selling the house himself and splitting between my brother.
Somebody recently mentioned potentially exempt transfer to me recently
My dad is about to inherit a house. At his age he says he’s not relay wanting the hassle, so his intention at the moment is to sign the house over to my brother and myself. Nearer the time will be seeking independent solicitor advice on the best route to go.
Is he better signing over to us or selling the house himself and splitting between my brother.
Somebody recently mentioned potentially exempt transfer to me recently
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Comments
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If either you or your brother do not want to become accidental landlords, then go for the cash. The simplest way to do this is to get the house sold by the executors. Whatever you decide your father should do this via a deed of variation, which will avoid the inheritance ever being counted as part of his estate as far as IHT is concerned.0
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Keep_pedalling wrote: »If either you or your brother do not want to become accidental landlords, then go for the cash. The simplest way to do this is to get the house sold by the executors. Whatever you decide your father should do this via a deed of variation, which will avoid the inheritance ever being counted as part of his estate as far as IHT is concerned.
Dad is still alive and kicking. He's inherited the from a friend. He's fairly comfortable of but does not need the hassle and stress at his age.
I asked him a few weeks back to tot up his estate including his own house and his inherited house. We don't think Touch the
IHT limit.0 -
Doesn't matter, you may as well do it as a deed of variation anyway to avoid the risk - you don't know what the IHT limit will become or what dad will be worth by the time he kicks the bucket.Dad is still alive and kicking. He's inherited the from a friend. He's fairly comfortable of but does not need the hassle and stress at his age.
I asked him a few weeks back to tot up his estate including his own house and his inherited house. We don't think Touch the
IHT limit.0 -
1) Dad signs a Deed of Variation to the will. The Executors then pass the house straght to you instead of to him.
But do you want to be landlords? Read:
https://forums.moneysavingexpert.com/discussion/comment/67759912#Comment_67759912
and make a decision!
2) Dad tells the Executors he wants the property sold. The Executors sell the property and distribute the money. Either to dad, or, again, he can do a DofV and pass the money to you. Or to charity. Ow whoever.
But it's pointless giving dad the house and then him selling it.0 -
No well be selling straight away0
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[FONT=Verdana, sans-serif]Check out the Capital Gains Tax situation before you decide what to do.[/FONT]
[FONT=Verdana, sans-serif]If the house has increased in value since the date of death (probate value) then CGT may be payable on its disposal.[/FONT]
[FONT=Verdana, sans-serif]If the disposal is made by the estate, there is only one £11,700 annual allowance and the estate pay any CGT at a rate of 28%[/FONT]
[FONT=Verdana, sans-serif]If there is a substantial gain the CGT could be minimised by your Dad signing a DOV giving the property to you and your brother. The estate then transfers the beneficial interest in the property to you and your brother before the sale to a 3rd party.[/FONT]
[FONT=Verdana, sans-serif]That way you and your brother each get a £11,700 allowance against your half of the gain and if any tax is payable it would be at 18% if you are basic rate taxpayers.[/FONT]0 -
Who is/are the Executor(s)?
He/they can sell the property. No need to pass to dad, or you, first.
The deceased's solicitor is the executor ans says it would be a conflict of interests for them to be selling for my father.
Also to add the property is in Scotland so things legally will be slightly different.0
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