Wills, money, and land abroad (Inheritance)

JakeHyde

Hi everyone, 
This might be hard for me to unpack, but here goes...

My dear mum passed away a year ago. She wanted everything to go to me, but due to the nature of her simple will, it all goes to my Dad, who is elderly and doesn't have a clue how to handle money. But he is happy for everything to go to me (like it should have in the first place).  English wasn't her first language, so god only knows what when on behind closed doors in the solicitors office, with my dad.

I think we have a small window to change the will. I don't know if we actually have to have a physical new one written, or Dad and myself can just agree between us or something? We are both executors.

Anyway, she had some money in an old bank account in Cyprus, which we have been trying to access while she was alive, issues with identity and the account being dormant proved to be an obstacle. They are not exactly the most helpful... they still use fax !!!!!!!  But providing I can clear things up, what is the best, cheapest, legal way to bring the money home to the UK?

Would I be better off getting some kind of online international bank card like 'Wise', or 'Revolute' or something?  My Auntie (her sister) is convinced we should go over there and carry the money home between us. Which I don't like the idea of, as it's about £15-20k, I think.

She also has a little bit of family land, in a small village, doing nothing. It needs to be put into my name, so I can sell it or something.  I'm not even sure how to go about this, with the UK/Cypriot government. Double Tax Relief?

I think with her savings and land, it could just about be under the £325k inheritance tax threshold. I have no idea how much the land is worth.  At one point it was valued at about £150-200k, but in more recent times I think £70-100k, due to Cypriot/Turkish tensions.

I would greatly appreciate your input on this one.  It's been chewing me up for a year. 🙏

TadleyBaggie

You can't just change someone's will after they have died, whatever their latest will says is how the estate must be distributed. So if the will says everything goes to your dad, then that is what the executor of the will would to do. He could then gift it to you once he has it.

Who is giving you advice that suggests the will can be changed?

JakeHyde

TadleyBaggie said:

You can't just change someone's will after they have died, whatever their latest will says is how the estate must be distributed. So if the will says everything goes to your dad, then that is what the executor of the will would to do. He could then gift it to you once he has it.

Who is giving you advice that suggests the will can be changed?

https://www.gov.uk/alter-a-will-after-a-death

TadleyBaggie

I never knew that. I knew a will could be challenged, if there was evidence the person making it had coerced, which didn't seem likely in this case.

JakeHyde

TadleyBaggie said:

I never knew that. I knew a will could be challenged, if there was evidence the person making it had coerced, which didn't seem likely in this case.

I'm so relieved I discovered this, I didn't know either! 

Choirgrl

A variation needs to be done within two years of the date of death, so you’re still within the allowed timescale. Given that you’re going to need to prove things to authorities in Cyprus, I think it’s worth getting it done by a solicitor rather than doing it DIY. They will be able to make sure it’s all done properly. You could see if you could find a solicitor who is also familiar with requirements in Cyprus, so they can make sure documents meet requirements there as well. Are you connected in with a UK Cypriot community to get recommendations from anyone - I imagine issues of accessing bank accounts, selling land and repatriating money aren’t that uncommon.

I can’t recommend the best way to transfer money, but do not carry it back in cash. Apart from all the security risks, you’ll also run into money laundering protections and may find it very difficult to exchange and to deposit into a bank.

unforeseen

It's called a deed of variation. The subject has cropped up on these boards quite often. 

Keep_pedalling

unforeseen said:

It's called a deed of variation. The subject has cropped up on these boards quite often. 

A deed of variation is not appropriate in this case (unless the OPs parents were not married) it offers no tax advantages and could actually leave you with an IHT liability if her estate turns out to be in excess of her NRB. 

Anything someone leaves to a spouse is covered by spousal exemption so a DoV will simply use up her NRB which would otherwise have been transferable to her husband’s estate. The simplest solution is for him to simply gift his inheritance to you if that is what he wants to do.

one note of caution gifting or him making a DoV will be seen as deliberate deprivation of assets if he is on any means tested benefits and the same could apply to future care costs if he does not have means of his own to fund them.

user1977

The Cypriot land is going to have to be dealt with under the Cypriot process (and who inherits might be different too - have you checked there isn't a Cypriot Will dealing with the estate there?), you'll have to get Cypriot advice about that.

Keep_pedalling

Another note of caution, from a couple your posts elsewhere it seems you don’t currently own property and your mother severed the tenancy on the marital home, so you need to be careful about  thanking ownership of her half of the family home. Owning that will impact the cost of buying your own home as you will loose your first time buyer status and you will pay an additional 3% of SDLT on any purchase you make. CGT could be an issue when you eventually sell as well.

The normal way to leave a share of the marital home to a child would be to create an immediate post-death interest trust, which effectively leave the beneficial ownership in the hands of the surviving spouse and the legal ownership with the trust. The eventual beneficiary does not get to inherit until the death of the surviving spouse. This provides absolute security for the surviving spouse and avoids the issues associated for the eventual beneficiary.

This would actually require a DoV as it is the only way to do it, but again it could be treated as deliberate deprivation of assets in some circumstances. 

Mands

user1977 said:

The Cypriot land is going to have to be dealt with under the Cypriot process (and who inherits might be different too - have you checked there isn't a Cypriot Will dealing with the estate there?), you'll have to get Cypriot advice about that.

If there's no Cypriot will then she is likely intestate here and the normal forced heirship rules apply. You, and any siblings, plus your father inherit in equal shares. There is a Cypriot equivalent of a deed of variation that your father could use to re-direct his share to you.

There is a central will registry here so it would be easy for a legal professional to check if she has a Cypriot will.

You must use a lawyer for probate here. Until recently there was a minimum charge of 5% (plus VAT, plus expenses) of the estate value. That has now been lifted, but lawyers tend to stick to the 5% as their fee structure.

* In what bank is her account? Some are more user-friendly than others. 
* In what village is the land? A 50% fall in value in recent years would be unusual and and it's hard to see how it could be attributed to the troubles of '74.

Mands