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No will but owns half of 2nd property?

Helly18
Posts: 28 Forumite

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
It It as simple as valuing the 50%, are there implications as this is ownership in 2nd property?
Thanks in anticipation
0
Comments
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Who did you mother leave her share to? If not your father was he given a life interest in it?0
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Keep_pedalling said:Who did you mother leave her share to? If not your father was he given a life interest in it?0
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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?
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.
Googling on your question might have been both quicker and easier, if you're only after simple facts rather than opinions!1 -
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 thanks0
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