Tenants in Common – What to do when one tenant dies?

poseidon1

Daz84 said:

RAS said:

You need to read the will.

It may says something about your father having the right to live in the house, with conditions? Those could be until death, might include the right to down size etc. You siblings and your father need to know what they are.

If so, that creates an immediate post death interest trust.

Your dad has 2 years from the date of your mum's death to register the IPDI trust with the HMRC. 

If it doesn't come back here as there's load of complications re first time buyer status, capital gains tax, benefits that you need to understand.

I've reviewed my mother's will, and as expected it appears a straight forward 'tenants in common' agreement, stating that the life tenant shall remain my farther and that the trust period is the time between my mother's death and the death of the life tenant (my farther).

So I assume that means my farther needs to register the immediate post death interest (IPDI) trust with HMRC now that my mother has died? 
Is that something normally done by himself, or is it best he get's his solicitors (the same who wrote the wills) to do so?

What you have just outlined is colloquially known as a life interest trust and technically an IPDI.  A life tenant is a specific legal term of art applicable to life interest trusts and has no bearing on your parent's previous 'tenant in common ' property ownership  position under land law precepts .

So yes, since your father is still alive there is a trust that must be registered with HMRC by the executors/trustees of your mother's Will ( whoever they are).

 Incidentally it is important to the fully  understand the terms of the trust your father is now a beneficiary. His life tenancy does not simply attach to the property in its current form.  Should he move into a care home and no longer live in the marital home , the trustees will be required to generate income from the house to provide him with ongoing income.

Similarly if the house is sold during your father's lifetime the resulting proceeds must be  re-invested to provide him with an ongoing income. That is the essence of a life tenancy, it is not just lifetime right of occupation of property, but also absolute entitlement to income that could be derived from the property if not occupied or retained.

Since you seem unfamiliar with these trust rights and obligations, strongly suggest you consult the firm of solicitors who drafted the will for more detailed immediate and future guidance

 Certainly, if  in future it becomes necessary to either rent out the home or sell and reinvest for your father's benefit, the trustees will then have ongoing hmrc income tax/ cgt compliance obligations which is precisely why the trust has to be registered now,  eventhough there are no tax implications at the present time.