Tenancy Change and IHT

bobster2

Keep_pedalling said:

msb1234 said:

shiraz99 said:

Consent is not required to sever a joint tenancy, however the other party would have to be served notice of the severance.

Interesting. Might it be seen as possible deprivation of assets though? 

That is not the case, the OPs mother is not being deprived of anything. This is no different to splitting joint savings to separate accounts. Both end up with exactly the same assets but those assets no longer automatically go to the survivor after the first death.

Yes - it's not deprivation of assets.

However, there is a remote possibility of another issue arising. If a Will fails to make appropriate provision for a surviving spouse then, after a death, if the surviving spouse is in care then it is possible that a local authority could initiate a claim under the Inheritance (Provision for Family & Dependants) Act 1975 in an effort to limit its liability for care fees.

Given that the OPs mother would still own half the house - so presumably have sufficient assets to pay for many years of care - it's unlikely that such a claim would be made - and arguable whether such a claim would succeed.

Dilbert_Investor

Thanks Keep Pedalling, much appreciate your advice.

We don’t have POA as capacity comes and hoes.   We’ll looking at POA and deputyship options now.

One final question on IHT.  I assume the residence nil rate band doesn’t taper for part ownership through the tenancy change?

Keep_pedalling

Dilbert_Investor said:

Thanks Keep Pedalling, much appreciate your advice.

We don’t have POA as capacity comes and hoes.   We’ll looking at POA and deputyship options now.

One final question on IHT.  I assume the residence nil rate band doesn’t taper for part ownership through the tenancy change?

No it didn’t