Mother died left half house in trust for siblings now stepfather dies

avenue12

Our stepfather just died whom we were on good terms with. Our mother died a while back and had half of their house put in trust for us two siblings, her children.

Now our step-father has died and left a will at the solicitors, which we haven't seen.

Just wondering how this works. We think we are executors, unless he made a new will.

We assume that he left his half to us also, but not definitely, so awaiting a solicitor's appointment.

If there are death duties/capital gains to pay on the house will it be for the whole house or just his half? Not sure.

If he left his half to us we assume that the solicitor can put the house in our joint names and we can sell it.(after any liabilities are settled). If so we have to sell as joint owners.

Any help in advance of seeing the solicitor would be very helpful. Obviously this would not be seen as financial advice, just friendly help.

Thanks in advance, as it is confusing at a time when we are upset aleady.

RAS

Your mother left half to you and the right to live in the house to your SF?

Whether you inherit the other half or not, the executors would be unwise to transfer the property into your names before sale. Doing so would mean you could incur a CGT liability when it sold, unnecessarily. And there's potential for losing first time buyer status, etc.

Regarding IHT, is the estate valued over £1m? Providing the house is worth £350k or more, there is unlikely to be any IHT liability. If the whole estate is worth less than the IHT allowance, it may be sensible for the executors to value the house towards the upper end of the suggested value. Meaning no IHT bill, and less chance of incurring one for CGT.  

gwynlas

It is impossible to advise without knowing the full circumstances of both your mothers and step fathers wills. Obviously you are aware you and your sibling were left half on your mothers death but did your step father own the other half or just have right to reside? If he owned half it might be willed to others and the property will need to be sold so that you can gain your inheritance. Tax would be dependent on size of estate.

avenue12

thanks both! stepdad owns half the.house and assume it comes to us. it's worth about 300k plus about 20k in bank after funeral costs. dont quite understand the IHT.

avenue12

also is there a bigger IHTallowance if it's direct relations i.e. daughter's?

poppystar

avenue12 said:

also is there a bigger IHTallowance if it's direct relations i.e. daughter's?

I’m not sure that would apply to your step fathers estate if you aren’t adopted by him. Although presumably you could transfer your mother’s RNRB if they were married. Again it is his executors who would need to do that. Have you established yet if that is you? 

avenue12

yes it is us. thanks seeing solicitor soon, it took over 2 weeks to obtain the death certificate 

35har1old

avenue12 said:

yes it is us. thanks seeing solicitor soon, it took over 2 weeks to obtain the death certificate 

Normal practice is to asked to be a executor.
Presumably these wills where made after the marriage 

avenue12

yes we are executors and now the regustrars given us the death cert we can see the solicitor,just wanted to be a bit clued up. thanks all 

avenue12

yes wills made after they married