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Inheritance, Wills & Probate questions?

edited 30 November -1 at 1:00AM in Deaths, Funerals & Probate
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bery_451bery_451 Forumite
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edited 30 November -1 at 1:00AM in Deaths, Funerals & Probate
Hi,

What is the latest law on this and is the previous older law allowed for certain circumstances?

If parents (land registry deeds homeowners) are not registered married in a registry office or parents living together that not registered married then both of these circumstances affect inheritance, wills and probate differently?

What is the difference between wills and inheritance and Probate?

The situation is I don't want to go to solicitors for advice as that is costly and hopefully I can get advice here. I just hoping to go to solicitors to get documents executed (signed) you know what I mean after 1 session of solicitor writing to keep legal fees to the minimum.

The query is just simply handing over asset that is house to children when either or both parents pass away. Does the children have to pay any tax when getting the house or are responsible for parents debts or what costly responsibilities are taken up from councils/government such as council tax etc? Does asset house become automatically collateral anyway if there is outstanding debt after death?

I understand the following question must be asked a thousand times and im sure you are all aware of grey loopholes in the law however I like to know legally:

How can children avoid paying tax, eliminate collateral, don't take on debts, avoid council/govt responsibilities when taking on a freehold house?

Finally what is free wills months and is a will sufficient to handle queries above?
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Replies

  • TigsteroonieTigsteroonie Forumite
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    First question - where in the UK are you? As the law in Scotland is different to the law in England & Wales.

    Second question - have you googled any of this? As 'a will' is quite different in meaning to 'inheritance' and 'probate' comes after you die ...

    Third question - what "previous older law" do you think might be valid? As nearly always a new law replaces an old law.
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  • Owain_MoneysaverOwain_Moneysaver Forumite
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    Your questions are a little disorganised but in general:
    bery_451 wrote: »
    Hi,
    If parents (land registry deeds homeowners) are not registered married in a registry office or parents living together that not registered married then both of these circumstances affect inheritance, wills and probate differently?

    Yes. If two people are not married then they will not have

    - the spouse's entitlement to inherit if there is no Will (intestacy)
    - the spouse's exemption from Inheritance Tax
    bery_451 wrote: »
    What is the difference between wills and inheritance and Probate?

    The Will is the document made by the person before they die.
    The inheritance is what they leave to someone.
    Probate is the process of "proving" the Will which usually has to be done before the Executor can start administering the estate. If only small amounts of money are involved, probate may not be necessary/
    bery_451 wrote: »

    The situation is I don't want to go to solicitors for advice as that is costly and hopefully I can get advice here. I just hoping to go to solicitors to get documents executed (signed) you know what I mean after 1 session of solicitor writing to keep legal fees to the minimum.

    I don't understand at all what you mean. Are you looking to make a Will or act as the Executor or Administrator to someone who has died?
    bery_451 wrote: »
    The query is just simply handing over asset that is house to children when either or both parents pass away. Does the children have to pay any tax when getting the house or are responsible for parents debts or what costly responsibilities are taken up from councils/government such as council tax etc? Does asset house become automatically collateral anyway if there is outstanding debt after death?

    The estate of the deceased person is responsible for paying any debts. If there is not enough money in the estate to pay any debts the estate is insolvent. Children are not responsible for parents' debts.

    Inheritance tax may be payable from the estate or by the beneficiaries. In particular

    - parents not being married may mean that more tax has to be paid
    - tax may be payable on gifts made within 7 years before death.

    Council tax usually ceases if the house is unoccupied after a death (subject to a time limit). Unpaid council tax due before death is a debt of the estate and must be paid out of the estate.

    Children are responsible for paying the cost of the funeral and burial if they instruct the funeral director. These costs can be reclaimed from the estate if there is sufficient money. Usually banks will pay funeral bills out of money in the deceased person's account.

    If there is not sufficient money in the estate to pay any debts due, then the house will have to be sold to pay the debts (or a beneficiary who inherits the house can pay money into the esate to clear the debt).
    bery_451 wrote: »
    I understand the following question must be asked a thousand times and im sure you are all aware of grey loopholes in the law however I like to know legally:

    How can children avoid paying tax, eliminate collateral, don't take on debts, avoid council/govt responsibilities when taking on a freehold house?

    It is not possible to avoid paying tax that is due. Tax will usually be paid out of the estate. The main exception is Inheritance Tax on gifts within 7 years, if there is no longer sufficient remaining funds in the estate to pay the tax.
    bery_451 wrote: »
    Finally what is free wills months and is a will sufficient to handle queries above?

    Free Will Months is when solicitors offer a free basic Will in exchange for a donation to charity.
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  • AnotherJoeAnotherJoe Forumite
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    Whatever the cost of a solicitor I can guarantee a messed up job done by half understanding answers will be far more costly especially if you bodge the tax minimisation approach. Often seen here, people make a rubbish attempt at avoiding taxes of all sorts and end up costing them and relatives more than if they'd done nothing.
    Other than that your questions are too general but I'll answer one, yes a house and other property is collateral and you cannot avoid debts by for example,buying an huge house running up large debts and no cash and then leaving the house to someone. If that's what you were asking ? Oh and children can avoid council tax by selling the property they inherit.
  • bery_451bery_451 Forumite
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    First question - where in the UK are you? As the law in Scotland is different to the law in England & Wales.

    Second question - have you googled any of this? As 'a will' is quite different in meaning to 'inheritance' and 'probate' comes after you die ...

    Third question - what "previous older law" do you think might be valid? As nearly always a new law replaces an old law.

    From England.

    Ok Will means before death and inheritance and probate comes after death meaning the only thing that can be done before death is will?

    Yes for example old benefits system and new benefits system. Old system is JSA where currently now some people are still on the old system and new System is Universal Credit for new applicants?

    Can the same be said here?
  • edited 3 May 2019 at 7:52AM
    AnotherJoeAnotherJoe Forumite
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    edited 3 May 2019 at 7:52AM
    bery_451 wrote: »
    Ok Will means before death and inheritance and probate comes after death meaning the only thing that can be done before death is will?
    No. many things can be done before death as regards inheritance and tax etc . What those are is a hugely general question that is different for everyone.


    bery_451 wrote: »

    Yes for example old benefits system and new benefits system. Old system is JSA where currently now some people are still on the old system and new System is Universal Credit for new applicants?
    Can the same be said here?
    No
  • Keep_pedallingKeep_pedalling Forumite
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    As unmarried parents it is vital that you both have wills in place and those wills should be drawn up by a solicitor, to do otherwise is foolish.

    No one can advise you about tax as none of us have a clue how big you estates are, however if you have significant assets being unmarried could mean a hefty IHT bill on the first death. Anything left to a spouse or civil partner is tax exempt.
  • MalthusianMalthusian Forumite
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    They need to see a solicitor to do their Wills and an Independent Financial Adviser to discuss Inheritance Tax mitigation if needed.

    Unless of course they want to lose money.

    I have no idea what these questions are driving at, but it is screamingly obvious that this is one of those cases where trying to do it on the cheap is likely to cost you a lot of money.

    The only thing more costly than taking professional advice is not taking professional advice.
  • nom_de_plumenom_de_plume Forumite
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    bery_451 wrote: »
    The situation is I don't want to go to solicitors for advice as that is costly...
    Most solicitors will give 30 minutes of free advice in the hope of securing your business.
  • bery_451bery_451 Forumite
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    Okay coming back to this thread, has the laws been changed or updated since?
  • Keep_pedallingKeep_pedalling Forumite
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    bery_451 wrote: »
    Okay coming back to this thread, has the laws been changed or updated since?

    No, but hopefully your unmarried parents got there willS in place in the time that has passed since you last posted.
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