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Knowledge and info needed on inheriting a house

Hello - can I ask who is the best person to speak to for advice and basic info on the process of inheriting homes, rules, taxes to consider etc?

Me and my sibling will inherit our family home when the time comes, and I have some basic questions:

Are capital gains taxes only applicable if SELL the property?

If we don't sell the property - do we still pay an inheritance tax?

As I already own a home, are there any costs I'd incur simply by inheriting a house?

I've read that a living trust could be an option but not sure what this means and what the pros and cons are - would this save us time and money later down the line?

Sorry this is vague but we are not sure on the process and trying to gain some knowledge so we are prepared - if there is an easy guide available that anyone knows about would be grateful if you could share.

Thank you




Comments

  • kenzie123
    kenzie123 Posts: 87
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    bobster2 said:
    thank you I'll move my post!
  • theartfullodger
    theartfullodger Posts: 14,366
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    Until whoever currently owns it dies, and probate sorted you've no certainty on who inherits:  Current owner clearly entitled to change existing will leaving everything to eg Battersea dogs home or a newly found partner.

    Counting chickens before eggs hatched 
  • FreeBear
    FreeBear Posts: 14,248
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    kenzie123 said:
    Hello - can I ask who is the best person to speak to for advice and basic info on the process of inheriting homes, rules, taxes to consider etc?
    The solicitor drawing up the will would be best placed on answering your questions, but rules change, so the answers may not be pertinent 20 years down the line. And you are using a STEP solicitor, and not one of these free will writing outfits aren't you.

    Me and my sibling will inherit our family home when the time comes, and I have some basic questions:

    Are capital gains taxes only applicable if SELL the property?
    CTX is payable on the difference in value at the time of probate, and when the property is sold. CTX limits are being reduced, so you may well have to pay more..

    If we don't sell the property - do we still pay an inheritance tax?
    Inheritance tax is paid by the estate long before you get ownership of the property - It may be that the house needs to be sold to cover the bill if there isn't enough other liquid assets.

    I've read that a living trust could be an option but not sure what this means and what the pros and cons are - would this save us time and money later down the line?
    Get the advice of a qualified solicitor that specialises in that field. Go for a cheap option (like one of the will/trust outfits), and it could end up being a very expensive mistake.

    Sorry this is vague but we are not sure on the process and trying to gain some knowledge so we are prepared - if there is an easy guide available that anyone knows about would be grateful if you could share.
    Whilst public forums can answer some of your questions, the information must be taken with a generous dose of salt. When drawing up wills or trusts, it is imperative that you get proper advice from a qualified solicitor that has training in these areas. Making a mistake now could end up costing thousands after you have died.

    Her courage will change the world.

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  • zagubov
    zagubov Posts: 17,860
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    Which country are you in? Inheritance laws vary on each side of the River Tweed and the Irish Sea?
    There is no honour to be had in not knowing a thing that can be known - Danny Baker
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