No will but owns half of 2nd property?

Helly18

My father recently  passed away and does not appear to have a will but has 3 children so we will directly inherit. The estate will be just under under the IHT limit and and the house will be sold. On the face of it seems  uncomplicated so I am looking at applying for letters of administration. however, my father owned the marital home as tenants in common with my mother who passed 4 yes ago. My brother wanted to continue to live there and assets distributed to reflect this and registered with the land registry, so 50/50 ownership. 

It It as simple as valuing the 50%, are there implications as this is ownership in 2nd property?
Thanks in anticipation 

Keep_pedalling

Who did you mother leave her share to? If not your father was he given a life interest in it?

Helly18

Keep_pedalling said:

Who did you mother leave her share to? If not your father was he given a life interest in it?

Sorry ment to add my parents where divoreced so it went to myself and siblings, the estate was shared with my brother taking the 50% of the house.

Marcon

Helly18 said:

Keep_pedalling said:

Who did you mother leave her share to? If not your father was he given a life interest in it?

Sorry ment to add my parents where divoreced so it went to myself and siblings, the estate was shared with my brother taking the 50% of the house.

Just to clarify - your brother currently owns 50% of the 'second' house; and your father owned the other 50% at the date of his death...?

What's the plan now - that your brother gets the 'other' 50% of the second house, and other assets are used to balance out the shares his siblings will receive?

If 'yes' to the above, then your late father's estate needs to include 50% of the value of the second house. That valuation can be complicated where there is dissent ('it's worth less because I own half and I wouldn't agree to sell so the market value has to be reduced accordingly'), but if harmony prevails, it shouldn't create any problems.

Be aware that your father's nil residence band (the extra IHT-free allowance of up to £175K where a property is left to a direct descendant, either by will or under the rules of intestacy) can only be applied to his main residence. If that's worth less than £175K, you can't use part of it to set off IHT on the second house.

Helly18

Thank you much appreciated yes that would be the plan. It's all amicable between us so valuation wouldn't be a problem. Tbh, it's probably not worth that much more than when mum passed as its in some disrepair, I was worried that the part ownership of a second property would be problematic.  I did a quick calculation and  (before nil residence band) and it looks like it would be just under iht threshold unless something else comes up in the iterim.
Many thanks