Possible Labour Changes in Inheritance Tax

Keep_pedalling

Did you apply for probate for your father?

RAS

NateW said:

Afraid I'm ignorant to the terminology, I do know that he left me half in his will, so then they must have been tenants in common. 

It doesn't work like that.

What matters is what is recorded at the Land Registry. It costs £3 and a few minutes to get the document.

Whatever it says, your parents' estate aren't going to be liable of IHT.

But you do need to sort the legal situation out before you apply.

As Keep_pedalling indicates, depending on the situation you may have to apply for probate for dad before you can apply for mum. And because they died 5-10 years ago, you may have to complete probate forms even if there is no IHT liability.

It's not rocket science but you do need to find out what the Land Registry says.

NateW

Ah okay, obviously should have sorted this long ago. Thanks so much for this advice, really do appreciate it. 

RAS

OK, start with the Land Registry.

I'm guessing that your last comment means that probate for dad wasn't gained? 

Come back once you have the deeds and we can help you pull together a plan. It's not going to be instant, probably take 20 weeks plus to get the first lot of probate once you make the first application. You may or may not need two applications.

NateW

Sadly you are right, with my dad it wasn't.

I have the deeds, both their names are listed as registered owners.

Yes, I thought I might have to do that, there isn't much though in the number of assets.

NateW

Sorry KP, not ignoring you, no I stupidly didn't apply for probate for my dad. Shortly after his death my mother was diagnosed with terminal cancer, and having to deal with it all I went into depression and have for years buried/ignnored things.

RAS

NateW said:

I have the deeds, both their names are listed as registered owners.

That isn't the question.

It is possible for two to four people to own a house, in two different ways.

If they own it jointly, then they all own 100% of the house and the survivor gets the lot. The others have no say in how their "portion" is dealt with when they die.

If they own it as tenants in common they each own a portion of the house, either equally or as they agree, and each can determine what happens to their portion when they die.

It matters which your parents chose because it affects the value your step-dad's estate, whether probate is needed and the IHT report. 

Can you post a copy of the deed with names and identifying details removed? If not, I'd suggest you try and get a short appointment with a solicitor who can read the document and explain which it is.

Keep_pedalling

NateW said:

Sorry KP, not ignoring you, no I stupidly didn't apply for probate for my dad. Shortly after his death my mother was diagnosed with terminal cancer, and having to deal with it all I went into depression and have for years buried/ignnored things.

Thanks for the clarification, please don’t beet yourself up over this it should not be too difficult to get sorted out. First thing, as RAS points out, is to sort out how the property was owned. If as joint tenants then your father’s bequest to you would have failed and your mother would have owned the property outright at the time of her death, which will actually make your life easier as you probably only need to obtain probate for her estate.

Was your father’s will drafted by a solicitor? 

NateW

It wasn't a step dad, it was my natural father, though I'm presuming that doesn't matter.

There is little more than the below:

Register summary

Registered owners:

Father's name

Property Address

Mother's name

Property Address



B: Proprietorship Register:

1

1998-05-11

PROPRIETOR: 'Father's name' and 'Mother's name' of 'Property Address'.

2

2004-05-12

RESTRICTION: No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.

C: Charges Register

This register contains any charges and other matters that affect the land.

Class of Title: Title absolute



Will gladly upload, though cannot immediately, but the rest is just general clauses.

NateW

HI KP, seems then that it would have all gone to my mother by what you say, despite my father's wishes.  Yes, it was drawn up by a solicitor. They were joint executor with myself but relinquished that right not long after my father's death.