Parent's Divorced - Still Use IHT Allowance?

Reg1988

Hi all - my parents divorced in 1990 but still lived in the same house. My father died in 1991 and my mother continued living in the house. She died recently and has left the house to her two children (me and my sister). Didn't know they were divorced so a bit of a shock finding the paperwork.

Even though they were divorced, can we still claim my father's IHT allowance from when he died?

Cheers Reggie

Savvy_Sue

I suspect not, but you might want to take some legal advice on that specific point. Are you the executor(s)?

Keep_pedalling

Unfortunately the divorce means there is no transferable NRB or RNRB.

Did your father make a new will after the divorce? If he did not none of his estate should have gone to your mother, although if the house was still held as joint tenants she would have automatically become the sole owner.

Reg1988

Thanks both (and thanks Keep_pedalling for the additional note on previous post; you're full of good news!)  :'(

As we can ascertain, there was no will - there is such a lack of paperwork it is frustrating.

There may have been a will, but if I can't find it (relatives upon being asked do not know / remember), can I proceed on the basis that there was and that my mum was the sole beneficiary? Just at a crossroads as to how best to proceed given the paucity of evidence.......will HMRC know that they were divorced?

Cheers as always
Reggie

Flugelhorn

How did they own the house when your father died? was it joint tenants ?

re father's will - unless he made one after the divorce then I think any he had before would have been invalid and his assets would have gone to his children??

Keep_pedalling

Reg1988 said:

Thanks both (and thanks Keep_pedalling for the additional note on previous post; you're full of good news!)  :'(

As we can ascertain, there was no will - there is such a lack of paperwork it is frustrating.

There may have been a will, but if I can't find it (relatives upon being asked do not know / remember), can I proceed on the basis that there was and that my mum was the sole beneficiary? Just at a crossroads as to how best to proceed given the paucity of evidence.......will HMRC know that they were divorced?

Cheers as always
Reggie

It is really strange that your mother never let on anything about this after your father died. First off you need to establish how the house was owned between the two of them, if they had switched ownership to tenants in common and there was no will then his half of the house would have passed to his children not his wife. If still owned as joint tenants then it would have passed to your mother.

Check the land registry for details of ownership and any restrictions on the property.

https://www.gov.uk/government/organisations/land-registry

 Also check the probate records to see if your father ‘s estate went through probate.

https://www.gov.uk/search-will-probate

Presumably you have found your mother’s divorce papers. Is there anything in it about financial settlements? 

Unfortunately I think your parents secret divorce is going to take a lot of untangling, and if no one actually administered your farther’s estate and he is still shown as owning 1/2 the house you will have 2 lots of probate to do.

getmore4less

Keep_pedalling said:

Reg1988 said:

Thanks both (and thanks Keep_pedalling for the additional note on previous post; you're full of good news!)  :'(

As we can ascertain, there was no will - there is such a lack of paperwork it is frustrating.

There may have been a will, but if I can't find it (relatives upon being asked do not know / remember), can I proceed on the basis that there was and that my mum was the sole beneficiary? Just at a crossroads as to how best to proceed given the paucity of evidence.......will HMRC know that they were divorced?

Cheers as always
Reggie

It is really strange that your mother never let on anything about this after your father died. First off you need to establish how the house was owned between the two of them, if they had switched ownership to tenants in common and there was no will then his half of the house would have passed to his children not his wife. If still owned as joint tenants then it would have passed to your mother.

Check the land registry for details of ownership and any restrictions on the property.

https://www.gov.uk/government/organisations/land-registry

 Also check the probate records to see if your father ‘s estate went through probate.

https://www.gov.uk/search-will-probate

Presumably you have found your mother’s divorce papers. Is there anything in it about financial settlements? 

Unfortunately I think your parents secret divorce is going to take a lot of untangling, and if no one actually administered your farther’s estate and he is still shown as owning 1/2 the house you will have 2 lots of probate to do.

Not to deal with the house.

Only a grant for the last legal owner should be needed to deal with the property,  unravelling the beneficial ownership will be needed, could get messy with some CGT due when sold.  


Also 
Divorce does not invalidate a will, it just changes the status of the spouse in specific ways(as if they had died) for any inheritance and if a named executor

Reg1988

Thank you both (again).

Land registry shows that the house is only in my mother's name which is good news I think.

So, based on this, can I use the allowance of my deceased father or does the divorce shut this option off?

Cheers
Reggie  

Keep_pedalling

Reg1988 said:

Thank you both (again).

Land registry shows that the house is only in my mother's name which is good news I think.

So, based on this, can I use the allowance of my deceased father or does the divorce shut this option off?

Cheers
Reggie  

Well it makes it simpler, but unfortunately the divorce looses all transferable allowances. 

DairyQueen

Reg1988 said:

Thank you both (again).

Land registry shows that the house is only in my mother's name which is good news I think.

So, based on this, can I use the allowance of my deceased father
No

or does the divorce shut this option off?
Yes

Cheers
Reggie  

Mum's ownership of the house is immaterial. The allowance is only transferable to the spouse of the deceased. When dad died mum was his ex-spouse.