Council Tax on Inherited Property

geoffreyc

My mother passed away a few weeks ago and I will very soon inherit her home. At the moment I live with my partner in a council property and we pay council tax there.

I fully understand council tax is chargeable on the property but will it be payable from the proceeds of the sale. There is no way I could currently afford to pay until it is sold.

Thanks

Flugelhorn

There is a period of time for which you can get exemption - this used to be 6 months from the date of probate but now varies by LA I think. You also can't be expected to pay anything until you have probate. You would need to discuss with the LA as to whether they will wait until the property is sold.

CIS

If probate has not been granted then ask about the Class F exemption.

G_M

The advice above assumes the property is now unoccupied of course!


And if it is, you need to review the insurance. (or rather, the executers need to).

davidmcn

geoffreyc wrote: »

will it be payable from the proceeds of the sale. There is no way I could currently afford to pay until it is sold.

To the extent that there is anything actually payable, I would fully expect the council to wait until there are liquid proceeds available from the sale. The same goes for any other creditors, at least as long as you can convince them that the estate is actively being wound up.

Norman_Castle

geoffreyc wrote: »

My mother passed away a few weeks ago and I will very soon inherit her home. At the moment I live with my partner in a council property and we pay council tax there.
I fully understand council tax is chargeable on the property but will it be payable from the proceeds of the sale. There is no way I could currently afford to pay until it is sold.

Sorry about your mother.


As above, find out from the council about exemptions. While the house is owned by the estate the estate is liable for any costs. You are not liable for this or any of your mothers debts.


https://forums.moneysavingexpert.com/forumdisplay.php?f=217

Larac

I am sorry for your loss. Councils normally allow six months from probate. We had a retirement flat to sell - which are difficult to sell. If the property remains empty for a year our council charged the full rate up front. If it wanders into the 2 years then you are looking at double council tax. (Hopefully you will never get to this). As I understand the 'Estate' is liable for this - our council was very much on the case on who the Executors were

getmore4less

Use class F exemption and don't get the grant to early as the 6 month clock starts

tboo

getmore4less wrote: »

Use class F exemption and don't get the grant to early as the 6 month clock starts

What do you mean?


Class F1 is applied from the date of death and remains on until probate is granted (which could be months)

then Class F2 is applied - this exemption has a time limit of 6 months


https://www.merton.gov.uk/council-tax-benefits-and-housing/council-tax/council-tax-discounts-exemptions-and-support/exemptions


https://www.southglos.gov.uk/council-tax/counciltax-discounts/council-tax-exemptions/

unforeseen

tboo wrote: »

What do you mean?


Class F1 is applied from the date of death and remains on until probate is granted (which could be months)

then Class F2 is applied - this exemption has a time limit of 6 months

Precisely. They mean don't rush to get probate as it stretches out the F1 exemption. As soon as Probate is granted then you only get 6 months on F2.

In other words get the house as ready as you can for sale within the F1 period even going so far as lining up a buyer and THEN apply for probate. You then have 6 months to complete without having to pay CT.

AdrianC

Who's the executor of your mother's estate? They could sell it and simply disburse the proceeds to you.

BTW, don't forget that a large chunk of assets in your name may well affect your eligibility to various benefits. It'll certainly affect your necessity for social housing...