Sale of property

nxdmsandkaskdjaqd

The below document is the register for my mothers property which is currently being sold.
The background is Sylvia's husband died some 11 years ago and 50% of the house was left to his wife and the remaining 50% split between their children.  Sylvia is still alive and moved into a Care Home.  I believe this is a tenants in common arrangement.
The question is (i) can the proceeds of the sale be sent direct to the individuals listed in the Proprietorship Register or does it all go to Sylvia for distribution? (ii) are funds being given to the children subject to Inheritance Tax?

RAS

What does the Sylvia's husband's will say about the IPDI trust it set up? Are there any comments on what happens if she sells, remarries etc?

It may allow her to receive the interest from the capital of the husband's 50% share until death, for example.

Keep_pedalling

It looks like 50% was left to the children absolutely rather than through an IPDI trust, if that is the case then, assuming the children did not live with their mother, their shares will be subject to CGT.

nxdmsandkaskdjaqd

RAS said:

What does the Sylvia's husband's will say about the IPDI trust it set up? Are there any comments on what happens if she sells, remarries etc?

It may allow her to receive the interest from the capital of the husband's 50% share until death, for example.

As far as I know there is no clause regarding IPDI trust.

tls123

Assume all parties signed to allow the house sale the proceeds would be split between parties listed on the deeds was there any deed of trust to confirm their exact share at the time the deeds were changed to show the children as owners?

RAS

There doesn't need to be a clause regarding the IPDI trust, the will defines the " rules of engagement". Get it wrong and the Social Services will be after you to make up any shortfall in the spouse's care costs.

I'd suggest a short session with a STEP qualified solicitor would be worthwhile; you may be OK, you may not. Find out.

Also, if the family have transferred ownership to the children, they now have a CGT liability when the sale is completed, with 60 days to pay. Again you need advice. If there is an IPDI trust there is no CGT liability; otherwise the children are liable.

nxdmsandkaskdjaqd

tls123 said:

Assume all parties signed to allow the house sale the proceeds would be split between parties listed on the deeds was there any deed of trust to confirm their exact share at the time the deeds were changed to show the children as owners?

Yes I believe the splits were defined in the will of the husband when the deeds were set up.

nxdmsandkaskdjaqd

RAS said:

There doesn't need to be a clause regarding the IPDI trust, the will defines the " rules of engagement". Get it wrong and the Social Services will be after you to make up any shortfall in the spouse's care costs.

I'd suggest a short session with a STEP qualified solicitor would be worthwhile; you may be OK, you may not. Find out.

Also, if the family have transferred ownership to the children, they now have a CGT liability when the sale is completed, with 60 days to pay. Again you need advice. If there is an IPDI trust there is no CGT liability; otherwise the children are liable.

Will be asking a solicitor for advice.