Re wills and IHT on first death

Mojisola

Snowbelle wrote: »

I don't believe they need to register their names if they are going to sell it as the solicitor doing the conveyancing would sort this out.

That's right - the property would be sold by the executors, no need to transfer ownership to the beneficiaries.

Keep_pedalling

Snowbelle wrote: »

If you and your wife have mirror wills leaving everything to each other on the first death, and then everything to the children on the second death, then the children can transfer £325,000 from the first death when the second parent dies. They can then raise the threshold by another £150,000 making £800,000 total. They would then need to get Probate before they can sell the house. I don't believe they need to register their names if they are going to sell it as the solicitor doing the conveyancing would sort this out.

The residential NRB is also transferable so, assuming the home is worth £300k or more, that makes £950k in total rising to £1M in April.

Snowbelle

Keep_pedalling wrote: »

The residential NRB is also transferable so, assuming the home is worth £300k or more, that makes £950k in total rising to £1M in April.

Yes, I meant to add that in as well:)
Have edited to clarity.

Keep_pedalling

bowlesbargain wrote: »

I am in the same position as the person who posted this. I am trying to give money to Children/Grand Children and fingers crossed I will live seven years and the sum will be free from Tax. But a friend has just died without notice and this does rock you and fix the mind.
I am thinking of changing my will so that the 1st £325,000 from Mine/wife's death goes to the children then they can sort the other partner out when it comes to that but they have got working capital for IHT.
We changed the house some years ago to Tennets in Common so half the house will go to the children on first death.
Not sure if this is the correct course of action but it may help.
Thank you to everyone who posted on this thread it has helped me with a few questions

You have to be careful here especially if your home is worth more than £650k which would result in an IHT bill on the first death.

There are reasons to put a house in TIC but IHT is not one of them. I would not change the will but would give more while you are still alive. If you are in good health is possible to cover IHT on failed PETs caused by an early death through cheap term insurance.

bowlesbargain

Keep_pedalling wrote: »

You have to be careful here especially if your home is worth more than £650k which would result in an IHT bill on the first death.

There are reasons to put a house in TIC but IHT is not one of them. I would not change the will but would give more while you are still alive. If you are in good health is possible to cover IHT on failed PETs caused by an early death through cheap term insurance.

Thank you. My house would be worth about 300,000 so would be except under the IHT rules, we are lucky and have a little bit in excess of £350,000 each manly in ISA,s.

I think a solicitor did the TIC to put half in trust but the will I did a year ago changed to a straight mirror will and removed any mention of a trust. I think my first solicitor was thinking of protecting the house from Nursing home fees

But again its nice to contribute to a threat with no !!!!!ing and nasty comments

joe134

bowlesbargain wrote: »

Thank you. My house would be worth about 300,000 so would be except under the IHT rules, we are lucky and have a little bit in excess of £350,000 each manly in ISA,s.

I think a solicitor did the TIC to put half in trust but the will I did a year ago changed to a straight mirror will and removed any mention of a trust. I think my first solicitor was thinking of protecting the house from Nursing home fees

But again its nice to contribute to a threat with no !!!!!ing and nasty comments

I have only estimated my house at £350 k, but really don’t know the value, it’s only worth what someone will pay, it could be more.
Does hmrc require estate agents valuation , or just a ballpark figure not intentionally under estimated.

I agree.
This has been the most informative and civil thread I have been on, in a long time.
The advice I have received is incalcuble, and gratefully appreciated.

I may have put it on the wrong place, but glad I did
Thanks all of you.:beer:

jamei305

joe134 wrote: »

I have only estimated my house at £350 k, but really don’t know the value, it’s only worth what someone will pay, it could be more.
Does hmrc require estate agents valuation , or just a ballpark figure not intentionally under estimated.

They generally require a valuation report by a RICS surveyor if the value is such that inheritance tax may be due. Even then, if it doesn't seem in line with similar sold properties in the area they will get the VOA to make inquiries.

Snowbelle

joe134 wrote: »

I have only estimated my house at £350 k, but really don’t know the value, it’s only worth what someone will pay, it could be more.
Does hmrc require estate agents valuation , or just a ballpark figure not intentionally under estimated.

I agree.
This has been the most informative and civil thread I have been on, in a long time.
The advice I have received is incalcuble, and gratefully appreciated.

I may have put it on the wrong place, but glad I did
Thanks all of you.:beer:

You have to register the value of the estate with HMRC before you can apply for Probate. This is the stage where you find out if IHT is payable and you can raise the threshold if need by. You can estimate the value of the house and as long as you do not need to pay any IHT they are happy with this. Even if the house sells for more you only need to let them know if you go over you threshold and IHT tax then becomes payable.

Land_Registry

joe134 - I've posted on your other thread but just to be clear on here as well for the benefit of others

The register is not definitive re such detail and the term 'tenants in common' is not referred to on the register.

Joint owners may indicate that they wish to hold the property as tenants in common when they are registered or may decide to sever their joint tenancy at some stage.

When this happens, and where the land is registered, we can register a Form A restriction on the registered title, namely
'No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court'

The Form A restriction does not itself change the ownership from beneficial joint tenancy to tenancy in common. The restriction only reflects the request or change made.

For further information see Joint property ownership available on the GOV.UK website

As far as the legal ownership is concerned if the property is registered in your joint names (not inc the children) then the legal ownership passes to your wife on your death.
If she were then to die it passes to her estate and her executor(s) would need to obtain probate to deal with the title.

joe134

Land_Registry wrote: »

joe134 - I've posted on your other thread but just to be clear on here as well for the benefit of others

The register is not definitive re such detail and the term 'tenants in common' is not referred to on the register.

Joint owners may indicate that they wish to hold the property as tenants in common when they are registered or may decide to sever their joint tenancy at some stage.

When this happens, and where the land is registered, we can register a Form A restriction on the registered title, namely
'No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court'

The Form A restriction does not itself change the ownership from beneficial joint tenancy to tenancy in common. The restriction only reflects the request or change made.

For further information see Joint property ownership available on the GOV.UK website

As far as the legal ownership is concerned if the property is registered in your joint names (not inc the children) then the legal ownership passes to your wife on your death.
If she were then to die it passes to her estate and her executor(s) would need to obtain probate to deal with the title.

Thank you very much LR, that’s very helpfull.
So when one of us dies, the other does not have to notify the LR , it auto goes to the spouse in my case ?
When the last one dies, do the executors, (ie. the kids,in our case ) who will inherit the house to sell, have to register the house in their names to sell it, or can they sell it as it stands, (still in our names) as part of our estate, after probate has been granted?
Thanks for posting on the other site, as this was so far advanced, it seemed logical to stay with this thread, which has been very helpfull indeed.
:beer: