Transferring ownership of inherited property - Advice please!

jasmineamber

Hello everyone, 

This is the first time I have posted on this forum, but I would really appreciate any advice.
I have just been granted Probate as the executor and sole beneficiary of my late mothers house.
My father is still residing in the property and will be until the end of his days.
My questions are:
How do I transfer the house into my name on the land registry etc and is it easy to do without a solicitor? ( I applied for Probate myself).
I have looked on the government website and printed the forms I think I need to complete - AP1, TP1 and ID1. Are these correct and are they quite straight forward to complete as they seem quite complex? I really don't want to pay for a solicitor if I can avoid it. 

Secondly, I now need to purchase Buildings insurance for the property now Probate has come through - do I need Landlords insurance as I am not living in the house but someone else is - even though there are no rent payments being exchanged. I have read conflicting answers online.

Thank you for reading, it all feels slighting overwhelming at the moment so any advice would be greatly appreciated   

 

Keep_pedalling

Don’t rush to do this you could be making a big mistake.

Did your mother’s will give your father the right to remain for life? Were they married? 

jasmineamber

Keep_pedalling said:

Don’t rush to do this you could be making a big mistake.

Did your mother’s will give your father the right to remain for life? Were they married? 

Yes, they were married but as the house was originally my grandparents she wanted it passed down directly to me.
Why she didn't leave it to my father I don't know as I am an only child so I would have inherited it anyway eventually.
It was an unwritten understanding that my father would stay there.
I am going to now make a will myself which states that my father has lifetime occupancy in the event of my death once I have dealt with these issues.

RAS

What is the value of the house?

Do you live in the house?

Your mother's will exposes you to tax liabilities unnecessarily. Was this professionally written? Do nothing until you understand the implications.

Keep_pedalling

jasmineamber said:

Keep_pedalling said:

Don’t rush to do this you could be making a big mistake.

Did your mother’s will give your father the right to remain for life? Were they married? 

Yes, they were married but as the house was originally my grandparents she wanted it passed down directly to me.
Why she didn't leave it to my father I don't know as I am an only child so I would have inherited it anyway eventually.
It was an unwritten understanding that my father would stay there.
I am going to now make a will myself which states that my father has lifetime occupancy in the event of my death once I have dealt with these issues.

Thanks for the clarification. I would suggest rather than transfer the property to yourself, you make a deed of variation  to create an immediate post death interest trust (IPDIT). This will provide your father additional security and it will be more tax efficient for you. Putting the house in your name is likely to leave you with an unnecessary capital gains tax liability when the house is eventually sold and if the value is over £500k an immediate IHT liability for your mother’s estate.

An IPDIT would put legal ownership of the house in trust and your father would become the beneficial owner until his death when both legal and beneficial ownership passes to you. For IHT purposes the house is covered by spousal exemption so avoids any IHT on your mother’s estate, and the trust means it can’t be touched by creditors should either you or your father run into financial difficulty, and it also would not be treated as your asset if you were to to be involved in a divorce. If you don’t already own your own home it also avoids loosing your first time buyer status and having to pay additional SDLT when you do buy one. 

You have 2 years from the date of death to be able to do this. As you are about to make your own will find a local STEP solicitor to do this and get advice on setting up a IPDIT. 

jasmineamber

RAS said:

What is the value of the house?

Do you live in the house?

Your mother's will exposes you to tax liabilities unnecessarily. Was this professionally written? Do nothing until you understand the implications.

No, I don't live in the house - I live in a rented property.

The property is a small bungalow which is in great need of a cosmetic overall internally therefore not worth a great deal - it definitely doesn't come anywhere the Inheritance Tax threshold.  

The will is now a public document as Probate has now been granted.

RAS

Follow K-p's advice because you'll have to pay extra SDLT if you buy a different house, and CGT if the house is sold in your lifetime, even if you move in after dad dies.

And risk dad losing the roof over his head if you divorce or become insolvent.

Keep_pedalling

jasmineamber said:

RAS said:

What is the value of the house?

Do you live in the house?

Your mother's will exposes you to tax liabilities unnecessarily. Was this professionally written? Do nothing until you understand the implications.

No, I don't live in the house - I live in a rented property.

Which is a very good reason for creating a IPDIT.

One thing I forgot to mention above, is that doing this prevents you becoming an accidental landlord. And all the hassle that comes with it.

jasmineamber

Thank you all for your responses. 

If I was to create an IPDIT, would Dad be liable for care home fees in the event that he needed to go into a home? 

Keep_pedalling

jasmineamber said:

Thank you all for your responses. 

If I was to create an IPDIT, would Dad be liable for care home fees in the event that he needed to go into a home? 

Only from any assets of his own, not the house.