Will / trust

jem16

I’ve just read through your post on the Home Buying board. Personally I wouldn’t be doing any work to turn it into a “proper” 3 bedroom house as that could open an even bigger can of worms. 

Market it as a 2 bedroom plus loft and let the solicitors deal with the legal aspects. At least you haven’t given specific details of the property so hopefully might help but I don’t know to be honest. It may well have had all the planning permission at the time but not as an actual third bedroom. It may just have been described as a loft extension. I have a vague recollection of a similar issue with my son’s property and it did have separate access and door but something prevented it being called a third bedroom. 

Skint_yet_Again

Thanks @jem16

So, don’t do any changes, don’t go and look at planning, market as a 2 bed. Anyone know what to do about insurance? I’ve been calling it a 3bed and there are 3 rooms used as bedrooms 

At least if it only sells for £155 it may be below his own NRB 

Savvy_Sue

Skint_yet_Again said:

Thanks @jem16

So, don’t do any changes, don’t go and look at planning, market as a 2 bed. Anyone know what to do about insurance? I’ve been calling it a 3bed and there are 3 rooms used as bedrooms 

At least if it only sells for £155 it may be below his own NRB 

Talk to the insurer - if it's not occupied, it's not being used as a bedroom, is it, so it depends how they calculate premiums IMO. 

It may well be that the fire regs preclude use as a bedroom: lack of a fire door and an insanely steep staircase make our loft conversion unsuitable as such. Certainly complying with them would be a ridiculously large project in our case. 

But the advice to market as is makes sense. You could spend a shedload of money and not recoup it, you don't know how the market will go (up or down).

Skint_yet_Again

Thanks @Savvy_Sue I suppose if it’s unoccupied none of the rooms are being used as bedrooms but normally as dad lived alone 1 bedroom was inhabited and 2 were occasional bedrooms. I will call the insurance company back and ask but he has always insured it as a 3 bed so am I opening another can of worms 😕

RAS

Just leave it as it is, insurance wise. If anything happens insurance wise, being over insured is much better than being under insured.

Re planning, asking specifically about PP for a loft conversion is more of an issue than just asking archive for anything they've got on "address", particularly if you don't explain why.

Having said that we were asked about PP for a "conservatory" being used as a utility room.  For which the buyer wanted PP that wasn't required when built. Eventually I authorised the EA to buy a sledge hammer, pay a couple of guys and a skip. The buyer calmed down. 

Skint_yet_Again

Thanks @RAS that makes sense about the insurance. I think there is a bit of a debate going on over on my thread on the house selling board 😂 Dads house also has a utility cupboard in the conservatory with space for washing machine and tumble dryer above, vented outside, 🙄 not gonna even worry about that! 

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. 

Please can anyone confirm what the implications of this may be apart from the use of £60000 of mums NRB. Does it affect the trust in any way or the house passing into dad’s estate or dad being the beneficial owner? 

Me & my sister are going to appoint a solicitor as I am losing confidence. I can still gather info for probate and I have already sent a letter to HMRC Trusts but am beginning to doubt if I have got that right about dad being beneficial owner and no tax liability on the trust 😵‍💫🤯

RAS

You don't need a solicitor. 

IPDI trusts don't need any action after the second death, as they cease to exist.

There's no IHT to pay. Given the discussions about 2 or three bedrooms, I'd price the house as a three bed for probate purposes. You are declaring it doesn't exceed x value not that it is worth x value.

That way if someone sees the scope to use as a three bed, you don't get a caught with a CGT liability.

poseidon1 has already suggested the basic wording for the letter to HMRC re reporting your mum's IDPI trust.  I'd suggest sorting that first.

The house situation is going to depend on the solicitor being on the ball and assertive, so spend your money there.

Skint_yet_Again

Thanks @RAS

I have sent the letter to HMRC, will see how long it takes to get a reply! 

Still getting unoccupied house insurance quotes as a 3 bed

Need at least 2 more estate agents. If I use the current 3 bed value first EA advised the figs are estimated as
house £170k
banks £190k
car £6645
house contents £1000

Mums NRB 325000 - 60000 to transfer?

Keep_pedalling

Skint_yet_Again said:

Thanks @RAS

I have sent the letter to HMRC, will see how long it takes to get a reply! 

Still getting unoccupied house insurance quotes as a 3 bed

Need at least 2 more estate agents. If I use the current 3 bed value first EA advised the figs are estimated as
house £170k
banks £190k
car £6645
house contents £1000

Mums NRB 325000 - 60000 to transfer?

Have a look at the probate form. All it asks for is if you are claiming the unused transferable NRB, you don’t have to declare how much that is. Had his estate been over £590k the error on the IHT205 return may have caused an issue but his estate is way below that so you don’t have to worry about it,