Will / trust

Skint_yet_Again

Thanks @gem16  that’s good to know. Although you are in Scotland and I don’t have a lawyer, I am hoping they will just accept the exemption should apply 🤞 Otherwise we may have to pay for a solicitor letter 

Skint_yet_Again

Ok, I have written my letter to HMRC Trust dept so will post that tomorrow. 

I have now looked at mums IHT205 & PA1 which shows 
share of joint assets (banks / car / half of household goods) £20798
total cash incl banks etc £45786
household items £450
tenants in common half house £60000
gross assets £106236
funeral expenses £1295
net assets for probate £104941
gross for IHT £127034
net for IHT £125739
assets passing to surviving spouse £65739
net qualifying value for excepted estates £60000 as per probate helpline advice 

Can anyone advise what is left of mums NRB as I can’t seem to get my head round that part. Probably trying to do too much at once. 🤯

Keep_pedalling

Skint_yet_Again said:

Ok, I have written my letter to HMRC Trust dept so will post that tomorrow. 

I have now looked at mums IHT205 & PA1 which shows 
share of joint assets (banks / car / half of household goods) £20798
total cash incl banks etc £45786
household items £450
tenants in common half house £60000
gross assets £106236
funeral expenses £1295
net assets for probate £104941
gross for IHT £127034
net for IHT £125739
assets passing to surviving spouse £65739
net qualifying value for excepted estates £60000 as per probate helpline advice 

Can anyone advise what is left of mums NRB as I can’t seem to get my head round that part. Probably trying to do too much at once. 🤯

Based on those figures £60k of her NRB was used up, but that is not correct as beneficial ownership of her share of the house also passed to her husband so that should also have included as exempted estate with none of her NRB used. 

Skint_yet_Again

😔 so much for help from the probate helpline in 2018. Probably too late to amend it now ? 

To top it off I have found multiple ancient papers and deeds and meticulous records apart from the loft extension paperwork of late 60’s / early 70’s. I believe this may result in the house being downgraded to a 2-bed with loft room rather than a 3-bed. 

According to online search I can contact the planning dept at the council Monday morning and ask them to do a manual search of their archive for historical records for the property. Think I should postpone the estate agent or ask for 2 values, one with planning/ building regs of the time & one without? 

Skint_yet_Again

Keep_pedalling said:

Skint_yet_Again said:

Ok, I have written my letter to HMRC Trust dept so will post that tomorrow. 

I have now looked at mums IHT205 & PA1 which shows 
share of joint assets (banks / car / half of household goods) £20798
total cash incl banks etc £45786
household items £450
tenants in common half house £60000
gross assets £106236
funeral expenses £1295
net assets for probate £104941
gross for IHT £127034
net for IHT £125739
assets passing to surviving spouse £65739
net qualifying value for excepted estates £60000 as per probate helpline advice 

Can anyone advise what is left of mums NRB as I can’t seem to get my head round that part. Probably trying to do too much at once. 🤯

Based on those figures £60k of her NRB was used up, but that is not correct as beneficial ownership of her share of the house also passed to her husband so that should also have included as exempted estate with none of her NRB used. 

Thank you @Keep_pedalling

So am I correct in thinking there is £265,000 to transfer from mums NRB and £325,000 of dads so total £590,000 before IHT is due? 

Skint_yet_Again

I have had the first quote for house probate value £155k - £160k. Do I just use the higher value? Two more estate agents to book. 

I have also contacted building control to see if they have any old records of building regs and am in process of booking a slot for the planning archive to see if we can find anything about the loft conversion/ dormer. Apparently they used to have a big map of each area and mark on planning applications and reference for each 10 year period. We are a small village so hopefully we can find a reference then view details on microfiche. If can be treated as 3 bed will be valued at £170k. 

Spoke to council tax and they will be checking land registry records for legal owners and write to us. I told them it is still registered in mum and dad’s name and explained about the trust but she said I will have to get a solicitor letter confirming who the legal owner is. 😕 Will wait for their letter. They accepted sister was not liable or classed as occupant for period she stayed with dad. 

Had an offer for the car on motor way which we have accepted. Just waiting for a date for them to come to check and collect. 

RAS

Contacting building control may affect the sale, as it could invalidate any attempt to use indemnity insurance if this is required by a buyer's mortgage provider. 

I'd strongly suggest you go and discuss this over on the house buying, selling and renting forum. If you've just asked, "Do you have any planning applications", that might be OK. If you've mentioned the loft extension maybe or may not, depending on the year it was done.

It'd be a good idea to understand the situation before going further.

Skint_yet_Again

Oh no 😟 I have already spoken to them. Loft conversion was done in the 1970’s 😢

Skint_yet_Again

Have posted the question on the house selling board 

https://forums.moneysavingexpert.com/discussion/6627094/have-i-made-a-mistake-contacting-building-control-about-planning#latest

Skint_yet_Again

Have opened a whole can of worms 😔

Looks like the house may have to be described as a 2 bed (built 1930’s according to dads current insurance) with loft room built in the ‘70’s with no paperwork. 

I have already emailed building regs with the address but they just came back and said their records only go back to 1994. 

I spoke to planning on the phone but only gave them the area & no name and they said I would need to look in the archive. I have already emailed the archive generally about an appointment but only gave the area not the address. So I will not make an appointment.

I will need a solicitor for the sale & will speak to them about declaring that I have been in touch with planning/ building control and let them sort it. What will be, will be. Too late now & I am sick with worry. Thought I was doing the right thing as an executor trying to find out if it could be sold as a 3 bed to maximise the estate. 

Property is currently insured as a 3 bed. I am looking at unoccupied house insurance but wondering now if I should be insuring as a 2 bed with loft room. 

NB Edited to add age of house