Ex Wife - No Will but sharing low value Estate with children

Oshbarg

Thanks, however my understanding of intestacy rules is that the first £250k automatically goes only to her widower. The estate beyond this value is then divided equally. Considering the estate does not reach the threshold value the children are not provisioned for at all without a will.

If I am wrong in this matter, I would appreciate guidance.

Thanks

Oshbarg

Hi,

Sorry I am looking to purchase the property from the Step Father / Widower for a value of £35k, I would then own the property and sell this once refurbished. When sold the mortgage taken out for the property would be settled and the remaining proceeds after costs would be halved between the children (estimated £70k total, so £35k each).

I am not sure on capital gains legislation, so part of the reason for asking for guidance. As I am worried that this division of the property proceeds would be liable to some some kind of taxation and the boys would lose out on their inheritance, only because their mother failed to write a will.

Keep_pedalling

Oshbarg wrote: »

Hi,

Sorry I am looking to purchase the property from the Step Father / Widower for a value of £35k, I would then own the property and sell this once refurbished. When sold the mortgage taken out for the property would be settled and the remaining proceeds after costs would be halved between the children (estimated £70k total, so £35k each).

I am not sure on capital gains legislation, so part of the reason for asking for guidance. As I am worried that this division of the property proceeds would be liable to some some kind of taxation and the boys would lose out on their inheritance, only because their mother failed to write a will.

You are complicating the issue by putting the property into your own name. The simplest solution would be to divide the inheritance 3 ways by DoV. Then sell it. The widow would get 1/3, your eldest 1/3 and the remainder put in trust for the youngest child as they are still a minor. There are no tax issues with this solution.

If you purchase the property for £35k then sell it for 3x that amount you will have a capital liability on the gain. It might be possible to transfer the property to the 3 beneficiaries before buying out the widow, but you have the complication of part of the house being owned by a trust, and you will struggle to raise a mortgage on such an arrangement.

I also don’t see why you want to waste time and money on refurbishment, in the long run it is unlikely to increase the amount of money your children receive and you could even get less back than you put in.

xylophone

only because their mother failed to write a will.

You said in your first post that the boys' mother wished to leave her estate in equal shares to her spouse and her two boys.

Did this mean half to spouse and half between the boys or 1/3 to each?


Once this has been determined, then as the spouse seems quite happy to give up the property, surely a Deed of Variation of intestacy as explained in post 4 above is the cleanest solution?

The Deed would direct that the property be sold and the proceeds divided as required (together with other assets of the deceased).

DairyQueen

thorsoak wrote: »

If your ex-wife did not leave a will, then she died intestate, and her estate goes to her next of kin - her sons.

Yet another false post on the rules of intestacy. Luckily (for OP), other posters have already corrected you.

gettingtheresometime

Why would he sell you the house for £35k?

Fire_Fox

Oshbarg wrote: »

Hi All,

My ex.wife passed away last year without leaving a will. She wanted to leave her estate in equal shares to her widow/husband and our 2 boys (Currently aged 18 and 14).

The estate value is £135k and the house is worth approx £115k.

Her husband although not legally required to share the estate has agreed to share it equally. He is not in a great financial position and therefore I have agreed to purchase the house for the value of his share using a Buy To Let mortgage - Interest Only (£35k). I will then renovate the house and sell it with the proceeds paying off the mortgage, renovation costs and the value left being split equally between my two boys (expected to be approx £35k each).

However as there is no will how do I go about tax efficiently gifting the proceeds of the property to the boys so they are not penalised?

My older son is currently in an apprenticeship earning £9k per year, therefore with a gift of £35k he would be seeing significant taxation.

Can anyone give me any advice on how I can provide the money they were entitled to (albeit not listed in a will) without any significant taxation?

Thanks in advance!

Oshbarg wrote: »

He has been granted a Letter of Administration, so would he need the deed of variation on top of this?

Due to his current financial position and the impact of her death on him, it is likely that he would be looking to claim benefit at sometime in future.

The property was solely owned by my ex.wife and only her name was listed on Land Registry however there was a joint mortgage held on the property I believe.

The boys lived with him for approximately 7 years and he knew his wifes wishes to share the estate equally, so he has been extremely gracious to agree. He also feels there are to many memories in the property and he wants to move on with his life so wants to make a new start in another property. (He is only in his mid thirties).

There is no Will so legally the boys are not entitled to anything until the estate value exceeds £250k and then they would be entitled to half of anything above this value I believe.

This reads incredibly badly. You are driving this.

A man that is in a very vulnerable mental place, and is in a precarious financial position has been influenced to gift you £100K of property. And may later be ineligible for benefits due to deprivation of assets.

Completely different to a grieving man has decided unilaterally to honour his late wife's wishes, sell the property and directly gift her sons £50K each OR use his powers as administrator to put the property in all three names.

This is how vulnerable single men end up homeless and destitute. I am not being overly dramatic, I know of numerous examples personally and via community organisations. I remember and miss others.

Please stop being so focussed on the ££££ that you (inadvertently I am sure) put his future at risk. Please support him getting legal advice and mental health support. Signpost to a bereavement charity or mens' mental health charity. Surely their mother would want this for the man she loved?

Do not allow any of the estate to go via you. By all means directly to the boys.