Life interest in property

ProbateNewbie

Thanks so much to you both. 🙂

Am booking an appointment with her solicitor soon as I have questions about the Will/Trust & as StepF is hellbent on being awkward, I need to be absolutely sure I am correctly understanding what the Will says.

I 'think' I understand it but want to be sure!

RnK136

ProbateNewbie said:

Thanks so much to you both. 🙂

Am booking an appointment with her solicitor soon as I have questions about the Will/Trust & as StepF is hellbent on being awkward, I need to be absolutely sure I am correctly understanding what the Will says.

I 'think' I understand it but want to be sure!

Sounds like the best plan 

ProbateNewbie

So, sibling has been tasked with getting the house valued.  They've asked me - does the estate agent's valuation need to be in writing?

No houses nearby have sold in recent years, so can't guess the value.
No IHT to pay, so doesn't need a RICS surveyor I wouldn't have thought? 🤔

Savvy_Sue

I'd say yes, it does need to be in writing - an email if nothing else! 

There may yet be value in getting a RICS surveyor to value for probate, rather than an estate agent's guesstimate. Because you may not have IHT to pay now, but since you and your sibling are not going to be living in the house, once SF dies and you come to sell, you may have Capital Gains Tax to pay. 

You will probably have to pay for this, but I'd say not necessarily: we found one who would do probate valuations for free, obviously in the hope you'd use his services in the future! 

doodling

Hi,

Savvy_Sue said:

I'd say yes, it does need to be in writing - an email if nothing else! 

There may yet be value in getting a RICS surveyor to value for probate, rather than an estate agent's guesstimate. Because you may not have IHT to pay now, but since you and your sibling are not going to be living in the house, once SF dies and you come to sell, you may have Capital Gains Tax to pay. 

You will probably have to pay for this, but I'd say not necessarily: we found one who would do probate valuations for free, obviously in the hope you'd use his services in the future! 

Whilst capital gains tax can't be ruled out, it would not normally be payable in this situation where the beneficial ownership rests entirely with the StepF.  Instead, IHT would be due based on the total value of the house when StepF dies.

ProbateNewbie

Thank you both.

@doodling, that would be HIS estate that would be possibly due for IHT, yes?

I don't know how long he's likely to go on for but am hoping my Mum's estate will have been sorted & distributed at that point.

When he dies, the property will be sold if it hasn't already, so CGT would most likely be due then, wouldn't it?

RAS

ProbateNewbie said:

Thank you both.

@doodling, that would be HIS estate that would be possibly due for IHT, yes?

I don't know how long he's likely to go on for but am hoping my Mum's estate will have been sorted & distributed at that point.

When he dies, the property will be sold if it hasn't already, so CGT would most likely be due then, wouldn't it?

If mum's portion has been left to you with step-dad having the right to remain under a life interest trust, generally you and your sibling don't own anything until after probate is granted on step-dad's estate. So you can't be charged CGT on something you don't own, however much the property value increases. That is one of the main reasons for the Trust. 

The details of the trust are in mum's will. It might be wise to speak to a STEP solicitor who can explain directly exactly what the specific ones mean, but people here can give you the basics if you type it out, minus any personal identifiers. 

For example, the trust might mean you get your share when the house is sold if he goes into care, or you might have to wait until after his death.

RnK136

RAS said:

ProbateNewbie said:

Thank you both.

@doodling, that would be HIS estate that would be possibly due for IHT, yes?

I don't know how long he's likely to go on for but am hoping my Mum's estate will have been sorted & distributed at that point.

When he dies, the property will be sold if it hasn't already, so CGT would most likely be due then, wouldn't it?

If mum's portion has been left to you with step-dad having the right to remain under a life interest trust, generally you and your sibling don't own anything until after probate is granted on step-dad's estate. So you can't be charged CGT on something you don't own, however much the property value increases. That is one of the main reasons for the Trust. 

The details of the trust are in mum's will. It might be wise to speak to a STEP solicitor who can explain directly exactly what the specific ones mean, but people here can give you the basics if you type it out, minus any personal identifiers. 

For example, the trust might mean you get your share when the house is sold if he goes into care, or you might have to wait until after his death.

Yes, this is our situation.

My Mum left her share of the house to me & my brother in trust but my Dad retains all beneficial interest.

As we are coming to a point where we may have to sell due him now being in residential care, if we sell I am told that his half can be used to pay for care, but also our half has to go into a trust fund because all interest earned from our half he is also entitled to and goes to pay for care.

We actually do not receive or own the capital of Mum's share until he dies and the trust ends.

This situation has upset us somewhat as I know that my Mum would not want this. The scenario possibility was obviously not explained to her when she wrote her will.
  

RAS

RnK136 said:

RAS said:

ProbateNewbie said:

Thank you both.

@doodling, that would be HIS estate that would be possibly due for IHT, yes?

I don't know how long he's likely to go on for but am hoping my Mum's estate will have been sorted & distributed at that point.

When he dies, the property will be sold if it hasn't already, so CGT would most likely be due then, wouldn't it?

If mum's portion has been left to you with step-dad having the right to remain under a life interest trust, generally you and your sibling don't own anything until after probate is granted on step-dad's estate. So you can't be charged CGT on something you don't own, however much the property value increases. That is one of the main reasons for the Trust. 

The details of the trust are in mum's will. It might be wise to speak to a STEP solicitor who can explain directly exactly what the specific ones mean, but people here can give you the basics if you type it out, minus any personal identifiers. 

For example, the trust might mean you get your share when the house is sold if he goes into care, or you might have to wait until after his death.

Yes, this is our situation.

My Mum left her share of the house to me & my brother in trust but my Dad retains all beneficial interest.

As we are coming to a point where we may have to sell due him now being in residential care, if we sell I am told that his half can be used to pay for care, but also our half has to go into a trust fund because all interest earned from our half he is also entitled to and goes to pay for care.

We actually do not receive or own the capital of Mum's share until he dies and the trust ends.

This situation has upset us somewhat as I know that my Mum would not want this. The scenario possibility was obviously not explained to her when she wrote her will.
  

A lot depends on the precise wording in the will.

ProbateNewbie

@RnK136 how are things going for you? Did you get the will registered? 

Not much progress here, work keeps getting in the way. Am hoping to get to grips with it all again very soon.


One thing I have found out, is that my Mum sold some shares a couple of years ago but I don't know where the money was deposited. Not in either of her bank accounts, although she did  have a joint account with StepFather & I'm wondering if it went in there, although he's unlikely to tell me even if I ask him... 🤨 She didn't generally use that account though and kept her finances totally separate from his.

Does anyone know if I am legally obliged to track where it went?