Help understanding will

lisyloo

Need a little help understanding the formalities here (the will was drawn up by a solicitor but today is a bank holiday).

My step-mum predeceased my Dad who has recently passed away.
My step-sister and brother are executors and trustees.
The house was held as tenants in common 50:50, so 50% passed to step-sister and her son on my step-mum's death.
My Dad's 50% comes to his 4 children and the estate is below the IHT threshold.

My questions are

1) Do the trustees formally need to do anything to dissolve "the trust" or is nothing required?
I believe the intention of the trust was to hold the property for the survivor after the 1st death. 

2) We need probate for the bank and house sale, so is this just a case of applying for probate below IHT threshold?

Thanks in advance for any help.
I know I can call the solicitors but I'm arranging a funeral, working, dealing with relatives, house clearance etc. not to mention the country being broken with staffing issues, twindemic etc. so informal help is very much appreciated.

p00hsticks

Sorry for your loss.

I'm a bit confused - you say that 'we' need probate but that your step-sister and brother are executors and trustees ? 

Do you mean that they were executors of your step-mothers will but that you are executor of your fathers will ?

If you are not the named executor then I'm not sure that the solicitor will discuss things with you....

lisyloo

Thankyou.

‘We’ are a combined family of 6.
4 on my dads side, 2 on my step-mums side.

I am not the executor but I am helping - fortunately we all get on well.
my brother asked me to help him with probate but of course would be done in the executors name.
yes I understand the executors will need to formally do certain things (although online and by phone many organisations have dealt with me as next of kin)

the wills were mirror wills - so house was in trust for survivor on 1st death.
My dads half split 4 ways, my step-mums half split 2 ways.

RAS

When did step-mum die?

lisyloo

She died June 2022, he died December 2022.
there is something in the will about one month, but not relevant.

looks like a discretionary trust to me with bits like “as my trustees think fit”.
I know it was properly set up by a solicitor.

they would otherwise have been on the margins for inheritance tax on second death.

RAS

Ok, the simplified rules about probate and IHT came in on 1 January 2022.

Keep_pedalling

lisyloo said:

She died June 2022, he died December 2022.
there is something in the will about one month, but not relevant.

looks like a discretionary trust to me with bits like “as my trustees think fit”.
I know it was properly set up by a solicitor.

they would otherwise have been on the margins for inheritance tax on second death.

Highly unlikely, trustees in this case refers the the executors who are the trustees of the estate until it is wound up.

getmore4less

lisyloo said:

Thankyou.

‘We’ are a combined family of 6.
4 on my dads side, 2 on my step-mums side.

I am not the executor but I am helping - fortunately we all get on well.
my brother asked me to help him with probate but of course would be done in the executors name.
yes I understand the executors will need to formally do certain things (although online and by phone many organisations have dealt with me as next of kin)

the wills were mirror wills - so house was in trust for survivor on 1st death.
My dads half split 4 ways, my step-mums half split 2 ways.

Most likely an IPDI trust(or one of it predecessors depending on date) on first death.

commonly know as a life interest.

Fairly recent changes meant that trust might have needed to be registered too late now but something to watch out for.

in these life interest trust cases the full value of the property is used for the second death not 50%

The death of the life tenant dissolves the trust and and the executors/trustees of the estate and trust can get on with the job.

If on first death trustees were added to the legal title probate will not be needed for the property.

 

lisyloo

very interesting points.

For IHT I think we're ok as we can transfer her unused allowance.

Probate is needed by the bank, but will need to check if the legal title was changed.

RAS

Checking the Land Registry gov.uk site cost £3. Don't get caught out by the burgers who charge 10-20 times as much to fill in the web-site form.

lisyloo

Thanks. I’ll ask my step-sister tomorrow now the holiday is over. She will know if she changed it.