Probate

SNN

My father in law recently died, we have sorted his financial affairs without the need for probate however, the property he owned with his wife (still alive) was held in Tenancy In Common so his wife owns half the house and his 50% share has now passed into a Life Interest Trust. Do we need a grant of probate to change the Title deed of the property to reflect the Life Interest Trust as owning what was his half share. Thanks

Keep_pedalling

No you don’t need probate, you don’t even need to change the title deeds at this stage. The whole house will form part of her estate but none of your FILs NRB will have been used up on the house.

SNN

Thanks for the quick reply. If his half share of the house is worth say £225k and is now the asset of the Life Interest trust then wouldn't this be using up £225k of his NRB? (Life Interest trust - beneficiary is the daughter but mum can still live in the property rent free and she still owns the other half the house).

Keep_pedalling

SNN said:

Thanks for the quick reply. If his half share of the house is worth say £225k and is now the asset of the Life Interest trust then wouldn't this be using up £225k of his NRB? (Life Interest trust - beneficiary is the daughter but mum can still live in the property rent free and she still owns the other half the house).

No, with a life interest trust to a spouse this is covered by spousal exemption and his share of the house forms part of her estate for IHT purposes. The eventual beneficiaries don’t gain ownership until she dies, which also avoids any CGT liability. 

SNN

Thanks, very helpful

widow2019

This is exactly what my husband and I did and it made it much easier to sort his affairs out when he died 3 years ago. I am now updating my will and have been advised I should put my half of the house in a trust fund so that my half pof the property is progtected from being used for care home fees and to avoid having to go through probate when I die but I am unsure if this is a good idea or even possible. Any advice or others experience of this would be appreciated

RAS

@widow2019

Is your house held as tenants in common, with a Life Interest Trust covering your husbands portion?

If so, you might want to start your own thread and ask for views here. 

widow2019

It was tenants in common and when he died 3 years ago his half was left to my children in a trust. I was looking to update my will and have been advised that my remining half should be in a trust in my name so that when I die it will pass straight to my children without having to go through probate

RAS

RAS said:

@widow2019

If so, you might want to start your own thread and ask for views here. 

As above.......