Son/daughter names were added to house deeds - do we need probate?

RAS

The deed of trust won't be held by the Land Registry. If there is one, it may be with the documents held by the conveyancer who added you and your sibling to the deeds, or it may be in mum's paperwork.

What's the value and what was her marital status? Depending on that you may not need to worry too much about the deed of trust.

OK, just seen your other response, which may have popped up after I hit post.

Appreciate you might be confident that no IHT is payable but unless you know what share of the property mum owned, you need to be confident that the value of the house and other assets does not exceed £650k, so you don't need the residential allowances.

Unfortunately because your mother added you to the deeds you are now liable for CGT at the appropriate rate for the increase in value between the date of the transfer and the sale. In the absence of a deed of trust, assume that's a third each on the total increase.

Had mum not done this, the estate would only be liable for any increase between her death and sale. 

Unintended but predictable additional tax liability to be paid within 60 days of sale. 

bicyclist

RAS said:

The deed of trust won't be held by the Land Registry. If there is one, it may be with the documents held by the conveyancer who added you and your sibling to the deeds, or it may be in mum's paperwork.

What's the value and what was her marital status? Depending on that you may not need to worry too much about the deed of trust.

I don't think it's with mum's paperwork. I suppose it may be with the conveyancer, and it looks like the addition of our names to the property was done at the same time as she made her will. All done through the same company. I have already phoned them to get the original will sent to me - look like I'll need to give them another call to ask about this.

RAS

See my edited comments above as you will have tax to pay.

bicyclist

RAS said:

The deed of trust won't be held by the Land Registry. If there is one, it may be with the documents held by the conveyancer who added you and your sibling to the deeds, or it may be in mum's paperwork.

What's the value and what was her marital status? Depending on that you may not need to worry too much about the deed of trust.

OK, just seen your other response, which may have popped up after I hit post.

Appreciate you might be confident that no IHT is payable but unless you know what share of the property mum owned, you need to be confident that the value of the house and other assets does not exceed £650k, so you don't need the residential allowances.

Unfortunately because your mother added you to the deeds you are now liable for CGT at the appropriate rate for the increase in value between the date of the transfer and the sale. In the absence of a deed of trust, assume that's a third each on the total increase.

Had mum not done this, the estate would only be liable for any increase between her death and sale. 

Unintended but predictable additional tax liability to be paid within 60 days of sale. 

No, That's ok - we know the total assets don't exceed 650k (by a fair amount). We understand she would have inherited dad's allowance as well (he passed 10 years ago)? Either way, Looks like IHT won't impact us.

Yes, I understand we'll now need to pay CGT. Can't be helped! So we'll (together) pay 2/3 basic rate CGT on the increase value of the house - minus one year CGT allowance (we can combine them I assume, as we are co-owners)? 

RAS

The residence relief is 9 months and the tax is based on months ownership not years. You also have an annual allowance you may be able to use if it's not expended elsewhere.

Also if you've a deed of trust splitting it differently that could increase or decrease your liability.

The other tax that might affect you is SDLT. Hopefully you both bought your first houses before mum added you to the deeds? 

bicyclist

RAS said:

The residence relief is 9 months and the tax is based on months ownership not years. You also have an annual allowance you may be able to use if it's not expended elsewhere.

Also if you've a deed of trust splitting it differently that could increase or decrease your liability.

The other tax that might affect you is SDLT. Hopefully you both bought your first houses before mum added you to the deeds? 

I'm not sure how to answer those questions - this is getting to the 'need a solicitor/financial advisor' point! Thanks for the info so far. Hopefully I can get someone to look at this for me.

RAS

You certainly need to know what the conveyancer have and then take advice from someone who understands CGT, not finances.

With regard to SDLT, there is a very good advisor on the house buying and sell forum here who has saved several people a lot of money by referring them to exceptions in the regulations about which their conveyancer/solicitor knew nothing. And helped others understand their increased liability. 

For example if either of you doesn't yet own your own home, you cannot now be a first time buyer for SDLT purposes.

sheramber

RAS said:

The residence relief is 9 months and the tax is based on months ownership not years. You also have an annual allowance you may be able to use if it's not expended elsewhere.

Also if you've a deed of trust splitting it differently that could increase or decrease your liability.

The other tax that might affect you is SDLT. Hopefully you both bought your first houses before mum added you to the deeds? 

Is the extra 9 months not only applicable if you were resident in the property.? Private Principal Residence Relief. 

OP says they  did not live there. 

RAS

sheramber said:

RAS said:

The residence relief is 9 months and the tax is based on months ownership not years. You also have an annual allowance you may be able to use if it's not expended elsewhere.

Also if you've a deed of trust splitting it differently that could increase or decrease your liability.

The other tax that might affect you is SDLT. Hopefully you both bought your first houses before mum added you to the deeds? 

Is the extra 9 months not only applicable if you were resident in the property.? Private Principal Residence Relief. 

OP says they  did not live there. 

Thank you are correct. I assume it would only apply if they had lived there for at least 9 months?

bicyclist

RAS said:

You certainly need to know what the conveyancer have and then take advice from someone who understands CGT, not finances.

With regard to SDLT, there is a very good advisor on the house buying and sell forum here who has saved several people a lot of money by referring them to exceptions in the regulations about which their conveyancer/solicitor knew nothing. And helped others understand their increased liability. 

For example if either of you doesn't yet own your own home, you cannot now be a first time buyer for SDLT purposes.

One of us owns a home, the other does not (though did in the past). Neither of us are resident at mum's property (although one may have been in the past but I'm not sure - certainly more than 25+ years ago if so).

I'll take a look at the house buy/sell forum. Thanks.