Inheritance affecting first time buyer status

Tom99

Rich2808 wrote: »

Re the above points I merely suggest the OP reads the declarations they would have to sign to claim their first time buyer lifetime or HTB isa bonuses and first time buyer stamp duty exemptions and consult their solicitor.

Whether they inherit a property as part of a will or as part of the disposal of an estate which was intestate they have arguably acquired an interest in a property - as by definition they wouldn’t have got the proceeds from the sale of the property otherwise.

I - based on advice given on this site previously and elsewhere - don’t think they would necessarily be eligible for the government’s first time buyer incentives.

Best to clarify with your solicitor!

Whether they inherit a property under a will or intestate does not matter. What matters is if the beneficial interest in the property has been transferred to that beneficiary.
This does not happen automatically since following death the beneficial interest passes to the executor/administrator acting as the deceased's personal representative.
There are two ways the beneficial interest can be transferred to a beneficiary:

1 - The administrator formally transfers the beneficial interest by way of an assent
2 - The administration period of the estate has come to an end because the residue of the estate has been ascertained.

Until one of those things happen the beneficiary remains a FTB.

SDLT_Geek

Tom99 wrote: »

Whether they inherit a property under a will or intestate does not matter. What matters is if the beneficial interest in the property has been transferred to that beneficiary.
This does not happen automatically since following death the beneficial interest passes to the executor/administrator acting as the deceased's personal representative.
There are two ways the beneficial interest can be transferred to a beneficiary:

1 - The administrator formally transfers the beneficial interest by way of an assent
2 - The administration period of the estate has come to an end because the residue of the estate has been ascertained.

Until one of those things happen the beneficiary remains a FTB.

Agreed, except it can also pass under an "appropriation". HMRC recently corrected their guidance on this point as it relates to the 4% surcharge, but the principle is the same: https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm09795