Council tax exemption F and will trust

Keep_pedalling

Ownership with these trusts is a little complicated, on your mother’s death legal ownership passed to the trust, but beneficial ownership remained with your father and is treated as such for IHT purposes. How the LA treat such complex ownership seems to be open to interpretation as the legislation does not talk about legal and beneficial ownership.

Although the trust ends on the death of the life tenant nothing can be done about transferring or selling the house until probate has been obtained for the second spouse so the exemption should apply. 

On a second point was the trust ever registered with HMRC? 

Blancmang25

Skint_yet_Again said:

Blancmang25 said: 

Yes, as you will now become the owners

This is where it gets complicated and I don’t understand. We WILL become the owners but we are not yet owners? I have been advised that dad is the beneficial owner while the house is now in probate and we do not own it yet.? 

Will wait for council tax letter & see what a solicitor says. 

Thank you for your help & links 

Okay, as I said its quite complex and rare.

Based on what you have just said above:

 As dad has been classed as the beneficial owner and probate has been applied for, you should be granted a Class F until probate is granted.(the people in the will trust are tenants and therefore dad as the owner(hierachy) is liable)

Then once probate had been granted you(will trust) become liable/plus anyone else in dad's will.

Skint_yet_Again

Sorry I didn’t mean to cross post or duplicate. The trust was never registered and I have written to HMRC as outlined by @poseidon1
Edit - 
I was just wanting to check council tax. 

Thank you all 

https://forums.moneysavingexpert.com/discussion/6626014/will-trust/p2

Blancmang25

Keep_pedalling said:

Ownership with these trusts is a little complicated, on your mother’s death legal ownership passed to the trust, but beneficial ownership remained with your father and is treated as such for IHT purposes. How the LA treat such complex ownership seems to be open to interpretation as the legislation does not talk about legal and beneficial ownership.

Although the trust ends on the death of the life tenant nothing can be done about transferring or selling the house until probate has been obtained for the second spouse so the exemption should apply. 

On a second point was the trust ever registered with HMRC? 

Ownership for council tax is also based on the hierarchy as set in legislation.

The dad(as owner) is liable as per hierarchy.

As I said earlier these sort of cases are quite rare, but as there is a probate case Class F will/should be given.

Skint_yet_Again

Thank you. Do we become liable to council tax as beneficiaries as soon as probate is granted or does the solicitor have to update land registry records first? 

mybestattempt

Skint_yet_Again said:

Thank you. Do we become liable to council tax as beneficiaries as soon as probate is granted or does the solicitor have to update land registry records first? 

The class F exemption lasts from the date of death until 6 months after the date probate is granted (or earlier if the property is sold or occupied).

If you are selling the property as executors during the administration of the estate there is no need to change the land registry details.