splitting proceeds from house sale

rosewater_2

My mother and I bought a house together and she passed away recently. 50% of the total value is mine and then the other 50% would be split 1/3 each to me, my sister and brother. My solicitor says that now mum has gone the house automatically becomes mine and when I sell it my sister and brother will have to pay tax on there share as it will be around 50K each. Is there any way around this?

eskbanker

Not sure how the house becomes yours automatically - surely you now own four-sixths and your siblings one-sixth each, or did the will specify something more complex that effectively forces a sale to liquidate the proceeds?

Anyway, what tax is your solicitor referring to - inheritance tax or capital gains tax or something else? Worth getting more detail from them on exactly what they mean so that you can determine tax avoidance possibilities after that....

MaxiRobriguez

eskbanker wrote: »

Not sure how the house becomes yours automatically - surely you now own four-sixths and your siblings one-sixth each, or did the will specify something more complex that effectively forces a sale to liquidate the proceeds?

Unless poster and mother are the only two on the deeds, and the instruction (not in a will) was for poster to sell house and distribute half of the proceeds equally between the three..?

Mojisola

The house would only become yours automatically if you and your mother were 'joint tenants' rather than 'tenants in common'.

noh

How was the title to the house registered were you and your mother joint tenants or tenants in common?

If joint tenants the house automatically becomes yours. It is not part of your mothers estate.

xylophone

My mother and I bought a house together and she passed away recently.

How was the house owned?

https://www.tenminutewill.co.uk/help.cgi?page=am_i_joint_tenant

It is vital to establish this. If you were not tenants in common, then your mother could not pass on her interest in her will and you become sole owner by survivorship.

Did you and your mother live in the property? Or did one or both of you live elsewhere?

Tom99

rosewater wrote: »

My mother and I bought a house together and she passed away recently. 50% of the total value is mine and then the other 50% would be split 1/3 each to me, my sister and brother. My solicitor says that now mum has gone the house automatically becomes mine and when I sell it my sister and brother will have to pay tax on there share as it will be around 50K each. Is there any way around this?

Your solicitor is correct in so far as you are the surviving joint owner therefore you are now the sole legal owner.
If you held the property as joint tenant then your mother's 50% beneficial interest also passes to you. If owned as tenants in common with no will then, as you say, 1/3rd of your mother's 50% beneficial interest will pass to you. If your mother left a will then her 50% beneficial interest will be inherited according the the will.
If you held the property as joint tenants (ie it is now 100% yours) it would be best for you to sign a deed of variation to hand over the 2/6ths to your siblings.
The only tax that may be payable by your siblings is possibly a share of the Inheritance Tax if any is due on the estate.