Joint Tenants or Tenants in Common? or cancel Form A? for IHT

MayQueen

Help needed please with another question. My parents purchased their council flat back in the 1980's as joint tenants/proprietors.
In 2010 they made a SEV Form A restriction. Does this mean the entry on Form HIT205 should be made as Tenants in Common? or should my mum now cancel the Form A? 

Keep_pedalling

It should go down as TiC

Who did your father leave his share of the flat to?

MayQueen

His share goes to mum. I didn't realise until just recently that they had made that change and I assumed that it would automatically go to her. Would it make a difference to the tax? I have been reading the Land Registry guide 'When a single surviving owner remains as owner', they will accept a statutory a statutory declaration  to cancel the Form A restriction. It also says that the Form A restriction does not change the ownership from a joint tenancy to a tenancy in common.

Keep_pedalling

Had they still been joint tenants it would have automatically passed to her. It would make no difference as far as tax is concerned, but it might have saved you having to go though probate if there were no other assets in his estate that needed it.

Tom99

Keep_pedalling said:

Had they still been joint tenants it would have automatically passed to her. It would make no difference as far as tax is concerned, but it might have saved you having to go though probate if there were no other assets in his estate that needed it.

Probate is not needed to transfer the legal interest to a surviving joint owner even if the property is held as tenants in common.

Keep_pedalling

Tom99 said:

Keep_pedalling said:

Had they still been joint tenants it would have automatically passed to her. It would make no difference as far as tax is concerned, but it might have saved you having to go though probate if there were no other assets in his estate that needed it.

Probate is not needed to transfer the legal interest to a surviving joint owner even if the property is held as tenants in common.

I stand corrected.

MayQueen

Thank you. So on the IHT205 do I put it down as Tenants in Common and Exemptions, box J.  (Or in box 9.2?) 
There is no benefit now in transfering the legal interest to my mum as surviving joint owner? Should I leave this for a later date as it does not affect the tax?

Tom99

MayQueen said:

Thank you. So on the IHT205 do I put it down as Tenants in Common and Exemptions, box J.  (Or in box 9.2?) 
There is no benefit now in transferring the legal interest to my mum as surviving joint owner? Should I leave this for a later date as it does not affect the tax?

You enter your father's 50% share of the property in box 11.9 11.8 and in box J you enter the total of assets left to your mother including the 50% share of the house, money, shares, car etc.

Then box K will be filled in automatically. If everything was left to your mother box K should = £0.

MayQueen

Thank you so much Tom99. I thought I would be able to do these forms myself but they are quite difficult for me. I may need more help...Dad left some for mum and some for us, his children.
If he left money to mum from a bank account in his sole name ( as written in his will) is that a 50% entry also? 

Tom99

MayQueen said:

Thank you so much Tom99. I thought I would be able to do these forms myself but they are quite difficult for me. I may need more help...Dad left some for mum and some for us, his children.
If he left money to mum from a bank account in his sole name ( as written in his will) is that a 50% entry also? 

If the bank account was in his sole name then 100% of the cash in that account goes in box 11.1 and whatever amount of that cash that was left to your mother is added to Box J.

Re his 50% of the flat value it should go in box 11.8 not 11.9 as I suggested in my previous post.

MayQueen

Thank you. We are using this bank account to pay for funeral, debts etc. So, I will deduct amounts before passing money to mum, once everything is sorted.
As dad had a second property in his sole name I will need to use both box 11.8 and 11.9. I suppose it doesn't matter in what order they go in?
He wrote his will before buying the second property, but left a note ( not a codicil) to say that he wanted it shared between the children. Mum has agreed and I am seeing a solicitor this week to find out the best way to do this. I am assuming it will be with a Deed of Variation. I have tried to understand what you said in another post about transfering the property to the beneficiaries before exchanging contract, so I will ask about that.