Is this good advice from local company dealing with probate?

ahfat41

Husband died recently and heft his 59% in a will trust giving me life interest.Am one if the trustees with two adult children. I emailed this company and asked I did not have to do probate but on my death whether probate will be required for him to be able to claim his nil rate band . This is the answer I got
As he left his share of the house in a Will Trust, it will be necessary to get a Grant of Probate for his Estate as the house will need to be formally transferred at Land Registry and the Trust will also need to be reported to HMRC now, rather than waiting until after your death. This is not the answer I expected.. I thought I could do nothing now and let the adult children sort it out when the house is sold.I also thought if I wanted as the surviving spouse I could add the two adult children names in the deed as trustees. Is he right, am I getting muddles? He also ld me he is busy and cannot help until mid March. His fees are reasonable and his profile is great.
Thanks

RAS

Assume you held the house as tenants in common? And did he leave his half to the children? 

What other sole assets did he leave? Some might need probate, others not even if they approach £50k in value.

Keep_pedalling

Is it just his share of  house that is included in the immediate post death interest trust? 

ahfat41

Just his share of the house.He left some money but they were all below probate threshold.He had some isas but he transferred them to our joint account before he died.  His estate has been settled it’s only his share of house is in a trust and I have not done anything regarding updating the register yet unless I had to do. Am aware if the trust registration within 2 yrs of passing. My understanding is I do not need probate to a the adult children names as trustees on the title deed whilst I am alive I cannot do it if I am dead then probate will be required.

poseidon1

So:

1) As you indicated,  the trust must be registered on  HMRC's trust register  ( as distinct from the Land registry  - see 2) below ) within 2 years of death. You can elect for one or other of your adult children to be the lead trustee for future correspondence purposes but the registration must take place. Fines maybe in point if failing to do so. Probably best to get it done sooner rather than later in case you forget.

2) For the protection of the beneficiaries entitled to the property/trust fund on your  death, the trust needs to be notified on the Land Registry by way of a Form A Restriction. This notifies the world at large that a trust is in place for a share of the property, and that you are not free to deal with it in your sole name. 

See below an article on the Land Registry procedure for dealing with the trust. If you have no desire to deal with these formalities, you should get the adult children to do so, since this is for their ultimate benefit and protection.

https://www.jonathanlea.net/blog/how-to-register-a-declaration-of-trust-at-the-land-registry/#:~:text=In registered land the way,that proprietor was a trustee

ahfat41

A form A restriction is already in place at land registry. We severed our tenancy when we created the will trusts. I did query this issue with land registry years ago I was informed the executors and beneficiaries (the adult children can change the register by submitting husband death certificate on first death and probate on second death. Am still not sure whether I should get probate for husband now in case it is needed on my death. I will seek the advice of another solicitor. My son is looking to buy a flat if his name is added as trustees and beneficiary, will this affect his status as first time buyer. Was just curious, will leave it for them to sort out after my death.

RAS

One of the major advantages of the IPDI trust is that it doesn't affect the first time buyer status of the remaindermen. It also protects than from CGT, which would apply if a portion of the ownership was inherited directly on the first death.

Marcon

ahfat41 said:

Husband died recently and heft his 59% in a will trust giving me life interest.Am one if the trustees with two adult children. I emailed this company and asked I did not have to do probate but on my death whether probate will be required for him to be able to claim his nil rate band . This is the answer I got
As he left his share of the house in a Will Trust, it will be necessary to get a Grant of Probate for his Estate as the house will need to be formally transferred at Land Registry and the Trust will also need to be reported to HMRC now, rather than waiting until after your death. This is not the answer I expected.. I thought I could do nothing now and let the adult children sort it out when the house is sold.I also thought if I wanted as the surviving spouse I could add the two adult children names in the deed as trustees. Is he right, am I getting muddles? He also ld me he is busy and cannot help until mid March. His fees are reasonable and his profile is great.
Thanks

...and you have so much confidence in him that you are seeking 'second opinions' from a bunch or random strangers on a public internet forum because his answer 'wasn't what you expected'.

That doesn't sound the most promising start to a professional relationship...are you sure he's the best bet for you?