Tennants in common, do we need probate?

Cleopatra11

Apologies if this has already been asked, I feel like I'm going around in circles and don't know where to start!

My mum died in January. She left my dad as surviving spouse and I have a sibling. Her will seems to be straight forward and seems to leave everything to my dad. The one area that seems not so straight forward is how they owned their home. They were owned as tennants in common. She left a life interest in her share to my dad, but eventually that will pass to my sibling and I. My dad's will is a mirror copy.

Do we need to go through probate as the house is tennants in common? If so, does this mean we need to value everything else in her estate, including her half of joint accounts etc? The bank have already closed her sole current account and transferred the money to my dad and their joint account is now in his sole name. I don't know whether there will be inheritance tax due, I assume because we are talking about more than one property, then there might be, but the properties aren't being sold. Does any tax need to be paid now, or can this wait until when my dad passes away?

I need to retrieve the original will from the solicitor, which I will do next week. My sibling, dad and I are named executors of her will. What do I need to then? Any advice will be gratefully received as thankfully, I am a complete novice never having had to do this before. 

Thank you!

Marcon

Cleopatra11 said:

Apologies if this has already been asked, I feel like I'm going around in circles and don't know where to start!

My mum died in January. She left my dad as surviving spouse and I have a sibling. Her will seems to be straight forward and seems to leave everything to my dad. The one area that seems not so straight forward is how they owned their home. They were owned as tennants in common. She left a life interest in her share to my dad, but eventually that will pass to my sibling and I. My dad's will is a mirror copy.

Do we need to go through probate as the house is tennants in common? If so, does this mean we need to value everything else in her estate, including her half of joint accounts etc? The bank have already closed her sole current account and transferred the money to my dad and their joint account is now in his sole name. I don't know whether there will be inheritance tax due, I assume because we are talking about more than one property, then there might be, but the properties aren't being sold. Does any tax need to be paid now, or can this wait until when my dad passes away?

I need to retrieve the original will from the solicitor, which I will do next week. My sibling, dad and I are named executors of her will. What do I need to then? Any advice will be gratefully received as thankfully, I am a complete novice never having had to do this before. 

Thank you!

Many of us face having to do this for the first time in the immediate aftermath of a loved one dying, so it's never easy.

https://www.litrg.org.uk/tax-nic/trusts-and-estates/bereavement-tax-issues-death/joint-property-death#:~:text=Where%20property%20is%20owned%20as,if%20there%20is%20no%20will. gives lots of clear and helpful information. 

https://www.litrg.org.uk/tax-nic/trusts-and-estates/bereavement-tax-issues-death is also likely to be of use, as is https://www.gov.uk/probate-estate

Keep_pedalling

You won’t need probate for the house as it is being left to the surviving spouse. The whole estate is covered by spousal exemption so no IHT either.

msb1234

Keep_pedalling said:

You won’t need probate for the house as it is being left to the surviving spouse. The whole estate is covered by spousal exemption so no IHT either.

But it isnt - only a life interest. And there seems to be more than 1 property, so it would depend on how the remaining property was held and who thats been left to.

Cleopatra11

Thanks for your help. To clarify, both properties are owned as TIC. Now my mum has passed away, my dad has been left beneficial life interest in her half of the properties, but with her half ultimately passing to my sibling and I upon my father's death. His will says the same.

I am assuming from the links posted above @Marcon we will need probate. I need to get my head around the information I need to gather before starting the probate process.

Keep_pedalling

Cleopatra11 said:

Thanks for your help. To clarify, both properties are owned as TIC. Now my mum has passed away, my dad has been left beneficial life interest in her half of the properties, but with her half ultimately passing to my sibling and I upon my father's death. His will says the same.

I am assuming from the links posted above @Marcon we will need probate. I need to get my head around the information I need to gather before starting the probate process.

You will only need probate on the second death, the surviving spouse is the beneficial owner of the share of the houses legally owned by the trust, and it forms part of their estate for IHT purposes.