Inherited a quarter of a house what forms do I use

katyandbrian

My parents were tenants in common.  Last year dad died and left his half of the house equally to me and my sister.  So I am only transferring half the house into our names.   What forms do I need to complete to show this on the deeds.  There is no mortgage and no IHT to be paid.   I think it’s AP1 but don’t know if I have to complete the TR1 form.  Trying to do it myself to save money.  Thanks

doodling

Hi,

Others will be able to comment on the forms necessary to achieve what you have written, butI have a couple of questions:

1. Does the will create a trust - are there any provisions in your Dad's will for your mum to live there as long as she wants?  If there are then the house will be owned by that trust rather than directly by you and your sister - that will affect how you and your sister own that half and the name you choose to put it in.

2. Do you want to own a quarter of a house?  It might be unavoidable without forcing the house to be sold which you probably wouldn't want to do but it will affect your fist time buyer status if you haven't already bought one yourself.  See also my first question - if your Dad's half share of the house is in trust until your Mum dies then it won't affect your first time buyer status (but in that case the ownership of your Dad's half should really be changed to the "the executors of [Dad]").

Keep_pedalling

As above be very careful. If the will gives your father a life interest then you and your sister will not inherit your mother’s share until your father’s death. Legal ownership of her share would be held in an emmediate post death interest trust, and your father is the beneficial owner. You don’t have to do anything about changing the LR at this stage but the trust needs to be registered with HMRC within 2 years of her death. 

If the will does not contain a life interest trust it would be in everyone’s best interest for you and your sibling to do a deed of variation to create one. There are a number of disadvantages to you and your sibling owning a share of the house, the first being you will be building up a CGT liability, the second is that it reduces your father’s security in the event that you or your sibling die, go bankrupt or get divorced. 

If either of you are not already home owners this then looses you your first time buyer status and meant you will be paying a a lot of additional tax when you do buy one. 

katyandbrian

doodling said:

Hi,

Others will be able to comment on the forms necessary to achieve what you have written, butI have a couple of questions:

1. Does the will create a trust - are there any provisions in your Dad's will for your mum to live there as long as she wants?  If there are then the house will be owned by that trust rather than directly by you and your sister - that will affect how you and your sister own that half and the name you choose to put it in.

2. Do you want to own a quarter of a house?  It might be unavoidable without forcing the house to be sold which you probably wouldn't want to do but it will affect your fist time buyer status if you haven't already bought one yourself.  See also my first question - if your Dad's half share of the house is in trust until your Mum dies then it won't affect your first time buyer status (but in that case the ownership of your Dad's half should really be changed to the "the executors of [Dad]").

It isn’t a trust and yes mum can live out her days there and the house will only be sold once she dies when myself and my sister will effectively share the house between us.   It’s all so confusing the forms are a nightmare.   Thanks for replying on my post

RAS

If the will specifies that mum can live out her days there, then it almost certainly is an Immediate Post Death Interest trust, even if it doesn't mention the word trust.

You'd be doing yourself and your sibling a huge disfavour by registering your personal interest in the property, even if the Land Registry allow it.

It affects your right to benefits, to buying as a first time buyer, and creates an unnecessary liability to pay Capital Gains Tax, and means mum could lose her home if either of you claim benefits, divorce, die  or become insolvent.

For everyone's sake, mum needs to see a good STEP solicitor for a half hour consultation.

Keep_pedalling

katyandbrian said:

doodling said:

Hi,

Others will be able to comment on the forms necessary to achieve what you have written, butI have a couple of questions:

1. Does the will create a trust - are there any provisions in your Dad's will for your mum to live there as long as she wants?  If there are then the house will be owned by that trust rather than directly by you and your sister - that will affect how you and your sister own that half and the name you choose to put it in.

2. Do you want to own a quarter of a house?  It might be unavoidable without forcing the house to be sold which you probably wouldn't want to do but it will affect your fist time buyer status if you haven't already bought one yourself.  See also my first question - if your Dad's half share of the house is in trust until your Mum dies then it won't affect your first time buyer status (but in that case the ownership of your Dad's half should really be changed to the "the executors of [Dad]").

It isn’t a trust and yes mum can live out her days there and the house will only be sold once she dies when myself and my sister will effectively share the house between us.   It’s all so confusing the forms are a nightmare.   Thanks for replying on my post

The word trust may not be used on in the will but if it states that she has a right to reside their for life then the will has certainly created one, and you should not put the house in your names.

This is a quite normal for a professionally drawn up will for the reasons I have stated in my previous post. If you have any doubts then please take professional advice. 

poseidon1

katyandbrian said:

doodling said:

Hi,

Others will be able to comment on the forms necessary to achieve what you have written, butI have a couple of questions:

1. Does the will create a trust - are there any provisions in your Dad's will for your mum to live there as long as she wants?  If there are then the house will be owned by that trust rather than directly by you and your sister - that will affect how you and your sister own that half and the name you choose to put it in.

2. Do you want to own a quarter of a house?  It might be unavoidable without forcing the house to be sold which you probably wouldn't want to do but it will affect your fist time buyer status if you haven't already bought one yourself.  See also my first question - if your Dad's half share of the house is in trust until your Mum dies then it won't affect your first time buyer status (but in that case the ownership of your Dad's half should really be changed to the "the executors of [Dad]").

It isn’t a trust and yes mum can live out her days there and the house will only be sold once she dies when myself and my sister will effectively share the house between us.   It’s all so confusing the forms are a nightmare.   Thanks for replying on my post

It's a trust.

Technically your mum is the Life Tenant with you and your sister as 'Remaindermen ' on her death. Prior to her death you are 'trustees' on her behalf in respect of the half share and that is the basis upon which you should  register as Co owners with your mother.

As advised by RAS and Keep_pedalling, you and your sister require further advice on the will and the 'trust' generally, in the event your mother wishes to downsize, and what are the parameters for the house and your mother's financial well being if she goes into care.

Land_Registry

Completing and submitting forms AP1, TR1 and ID1/ID3 can transfer the whole of the legal ownership from your Mum to the three of you as appropriate. You can't transfer a quarter share for example
But I too would reiterate the advice given by others as form-filling on it's own is usually the easy part and you all need to get advice as to what options exist, which is the 'best' one and what happens in the future as well
We deal with the outcome of such deliberations hence the form-filling and if you do decide to update the register then I'd also recommend asking your legal rep to assist there as well