Land registry transferring title deeds

ourkidsidmse

My wife inherited a property from her mum who passed away last year. Probabe has been granted and she is the sole beneficiary. Is it necessary to transfer the property into her name? I noticed when her parents purchased the property 12 years ago in the solicitors pack (paperwork) the previous owners were already deceased as it showed their names on the title deeds their death certs and probate showing the executors that sold the property indicating that they did not bother to transfer ownership. The property will be rented out. Is there any need or legal requirement to pay to change the title or will the probate and death certificate suffice to prove ownership?

Falafels

We're lucky enough to have a Land Registry rep on this forum! She'd be able to help you:
https://forums.moneysavingexpert.com/discussion/5685941/land-registry-questions#latest

greatcrested

If she were planning to sell, then she (or rather the Executers of the will) could transfer the property from the deceased's name directly into the name of the buyer/new owner. No need to put it in Beneficiary's (wife's) name first.

However since she intends to keep the property it should be transfered into her name, just as all the assets of the Estate should be transfered to the Beneficiaries so that the Estate can be wound up.

Obviously, until then, any rent received from the tenants in the property should go to the Estate, and be declared by the Executers, on the Estate's annual tax return.

Once the property is transferred, your wife will receive the rent and declare it on her personal tax return.

ourkidsidmse

So if the rent income goes to the estate can this be a better option for tax in any way? I was thinking it would go to my wife and then do a self assesment tax return and pay income tax on it, will it make any difference either way?

greatcrested

Depends on the tax positions of the Estate and your wife.

But either way, until the Estate is wound up income goes to the Estate.

Once Probate is granted, Estate should be wound up.

Once Estate is wound up, income goes to the new registered owner/Beneficiary.

ourkidsidmse

probate is granted, just haven't got round to transferring property as there is a cost to do it.

ourkidsidmse

wife works pt and earns around 9k pa, rent income will be 1200 pm

ourkidsidmse

not sure about tax position of estate, didn't realis that is a thing. estate was under the IHT threshold

greatcrested

The cost of transfer is minimal.

https://www.gov.uk/government/publications/registered-titles-whole-transfer-tr1

£40.00

https://www.gov.uk/guidance/hm-land-registry-registration-services-fees

Re Estate tax:

https://www.gov.uk/self-assessment-tax-returns/returns-for-someone-who-has-died

xylophone

See
https://www.litrg.org.uk/tax-guides/bereavement/how-does-personal-representative-deal-income-and-capital-gains-arising-after

Land_Registry

ourkidsidmse said:

My wife inherited a property from her mum who passed away last year. Probabe has been granted and she is the sole beneficiary. Is it necessary to transfer the property into her name? I noticed when her parents purchased the property 12 years ago in the solicitors pack (paperwork) the previous owners were already deceased as it showed their names on the title deeds their death certs and probate showing the executors that sold the property indicating that they did not bother to transfer ownership. The property will be rented out. Is there any need or legal requirement to pay to change the title or will the probate and death certificate suffice to prove ownership?

From a registration perspective it’s not a legal requirement to update the register on death. As you are already aware some properties stay ‘in the family’ but at some stage the legal ownership invariably has to be updated by someone transferring it. 

Someone renting may be happy to accept probate as proof of death and to identify the executor who they give the rent to. 

How that plays out in tax terms etc is not our area to advise on but as posted by others makes sense