Help with Dad's Estate

DreamingofGreece

My Dad is currently receiving end of life care at home due to a recent diagnosis of pancreatic cancer. My sister and I are the executors of his will and while I have time on my hands (currently sitting with Dad throughout the night) I am trying to obtain an understanding of what we need to do regarding his estate when he passes as I know my Mum and sister will look to me for advice. 

My understanding of Dad's assets are as follows:

A house without a mortgage valued at approximately £200k which is owned 50/50 as tenants in common with our Mum who is still alive. Dad's 50% share of the property is to be distributed 40% each to me and my sister and 10% each to my Nephew's (currently age 6 and 14). Our Mum retains the right to live in the property until she passes away. Mum has the same arrangements for distribution of her 50% of the property when she passes away (hopefully not for many years). Do we need to have the property valued once Dad passes? It is highly unlikely that Mum would need to sell the property (unless for future care fees) as her and Dad downsized to a small bungalow 2 years ago. What happens with the beneficiaries share while Mum is still living in the property? I am thinking more about the share for my Nephews as they aren't yet adults. I know we don't receive any proceeds from Dad's share until Mum passes but I'm wondering whether we will need to update Land Registry etc. 

A car worth approximately £7k, which passes to my Mum.

A watch worth approximately £1.5k which passes to one of my Nephews. 

Dad has no money held solely in his name. He has 2 joint accounts with my Mum. Am I right in assuming this money would pass automatically to my Mum?

Dad doesn't have any debts. 

Based on the above, I don't think we need to apply for probate do we?

Thanks for any help anyone is able to offer, I'm just a bit confused about tenants in common, probate and inheritance tax etc. Please let me know if you need any further information from me. I don't know if this is relevant but both my sister and I own our own houses (my sister's is mortgaged and mine is mortgage free).

Please don't judge me for asking these questions before my Dad has passed, the pancreatic cancer  diagnosis and prognosis came as an almighty shock and I am coping by focusing on practical matters. I can't really process what is happening and will deal with my grief at a later date. 

Keep_pedalling

From what you have said probate will not be required. The will sets up an immediate post death interest trust which passes the beneficial ownership to your mother (legal ownership of his share is with the trust). 

The trust will need registering with HMRC within two years of his death but that is all you will need to do. His other joint assets pass to your mother automatically. The house and other assets passing to your mother are covered by spousal exemption so only £1500 of his nil rate band will be used up the rest can be transferred to you mother’s estate if needed.

DreamingofGreece

Thank you so much for your very helpful response. 

Regarding the £1500 of Dad's nil rate band you refer to, does this relate to the watch which passes to my Nephew (his Grandson)? If so, do I need to get an up to date valuation of the watch as I am only guessing at the value based on what it was purchased for about 15 years ago. 

Keep_pedalling

DreamingofGreece said:

Thank you so much for your very helpful response. 

Regarding the £1500 of Dad's nil rate band you refer to, does this relate to the watch which passes to my Nephew (his Grandson)? If so, do I need to get an up to date valuation of the watch as I am only guessing at the value based on what it was purchased for about 15 years ago. 

No, I would just record it as a nominal amount on the estate accounts. Unless it is a highly collectible model it is unlikely to be worth more than a few hundred after 15 years. 

DreamingofGreece

Thanks again for your response. 

It's a standard TAG Heuer so not highly collectable.

Am I right in thinking that we will need to apply for probate once our Mum passes away? 

Keep_pedalling

DreamingofGreece said:

Thanks again for your response. 

It's a standard TAG Heuer so not highly collectable.

Am I right in thinking that we will need to apply for probate once our Mum passes away? 

As long as she still has a property at the time of death, yes.

DreamingofGreece

Thank you so much, you have been extremely helpful at a very difficult time.