Nil Rate Tax 11 October 2022 at 9:35AM edited 11 October 2022 at 9:37AM in Deaths, funerals & probate 6 replies 172 views

otb666

My MIL passed away If we change house from joint to FIL only do we lose the transferable Nil rate tax thingy when FIL dies ?. House is 350k Savings 100k.  Is it best not to change from joint after one of joint owners passes away FIL is executor in will and beneficiary.  We have done all the banks etc without probate as MIL only had 10k in savings and everything else was joint. 

Keep_pedalling

Whether you make the changes on the land registry or not you FIL is now the sole owner of the property. This does not effect the transferable NRB or the transferable residential NRB, but his estate won’t need either as it is well within his own exemptions.

shiraz99

otb666 said:

My MIL passed away If we change house from joint to FIL only do we lose the transferable Nil rate tax thingy when FIL dies ?. House is 350k Savings 100k.  Is it best not to change from joint after one of joint owners passes away FIL is executor in will and beneficiary.  We have done all the banks etc without probate as MIL only had 10k in savings and everything else was joint. 

Really isn't much reason to change the register on the property. As mentioned by KP, your FIL is now legally the sole owner of the property regardless.

shiraz99

Keep_pedalling said:

Whether you make the changes on the land registry or not you FIL is now the sole owner of the property. This does not effect the transferable NRB or the transferable residential NRB, but his estate won’t need either as it is well within his own exemptions.

This is true, but if there is any inherited NRB from the MIL it's best to apply that first else you'll end up having to fill out the IHT400 form to get the RNRB.

Keep_pedalling

shiraz99 said:

Keep_pedalling said:

Whether you make the changes on the land registry or not you FIL is now the sole owner of the property. This does not effect the transferable NRB or the transferable residential NRB, but his estate won’t need either as it is well within his own exemptions.

This is true, but if there is any inherited NRB from the MIL it's best to apply that first else you'll end up having to fill out the IHT400 form to get the RNRB.

Good point. 

otb666

my FIL is currently in good health So not quite sure still whats the best order to do things. I dont understand really How do I apply the NRB for MIL when FIL does pass away as then the will passes property to his 2 sons. Thank you for replies 

poppystar

It doesn’t matter in terms of the NRB who FiL leaves his money to, so you don’t have to worry about that. 

If everything has currently passed from MiL to FiL then so has her NRB. Her money/property and her NRB allowance. So when FiL does pass he will have his NRB and her NRB because it hasn’t been used. These will be set against his estate - so at todays values he will have an allowance of 2x £325k before he would have to pay any inheritance tax - which sounds plenty unless he comes into money in the meantime.

As he then leaves everything to his sons and there is a property involved then he would also get up to £350k more allowance if it was needed.

As has been said above you don’t need to change the Land Registry paperwork now.