Probate RNRB query

Bluejeans2025

Hello, I was wondering if anyone could help.

I’m applying for probate for my Mum. She died in 2023. The only asset we need to sort out is her half of a property, which she left to me and my 2 sisters (so direct descendants). My Dad is still alive and lives in the property still.

Only issue is, my mum never lived there. She went into a care home in 2019. In 2021 my Dad sold their home and moved to a slightly smaller/more practical property. Not a significant reduction in value.

I’m wondering, can we use Mum’s  RNRB? As the probate calculation website states ‘they must have lived there’.

I’m hoping it still counts, as the new property replaced the one that she did live in. Her name is on the land registry as a joint owner (tenants in common).

My Mum’s half of this property was worth £137,500 as at her date of death.

In case it’s needed, the rest of her estate, which passed straight to my Dad as joint owner was as follows:

Mum’s half as at DoD:

Banks acc/cash savings - £2K

Spanish property- £65K 

Assets - electronics, furniture, etc - £5k (approx)

If anyone else has experienced something similar or has legal knowledge on this I’d really appreciate your input.

We’re trying to apply for probate ourselves, as solicitors fees are so expensive and there’s nothing to really inherit at the moment. We obviously can’t sell the house as my Dad still lives there, and it’s a stipulation in my Mums will that he can live there for the rest of his life. Obviously we would never do that to our Dad anyway!

Many thanks for any replies.

poppystar

It doesn’t sound like you need the RNRB anyway. She has the usual NRB of £325k and anything passing to your father is covered by spousal exemption. 

poseidon1

Not correct that any of your mother's NRB has been used on her death. 

 Please note your mum's will did not directly give you beneficial ownership of her share of the house on death.

What she did was establish an IPDI trust for your father's lifetime. Only after his death do you inherit  her half, and  for IHT reporting purposes both halves are in your father's estate when he eventually dies. Therefore for probate of her will she made an effective  IHT free gift of her half share to your father, which is why her entire NRB remains intact at this point.

On the values you provided, you will not need your mother's RNRB when your father eventually passes. His NRB together with your mother's transferable NRB will be more than enough to avoid IHT.

Please be aware, the trust will need to  registered on the HMRC Trust register  as soon as probate is granted.

See link below to register the trust in due course. 

https://www.gov.uk/guidance/register-a-trust-as-a-trustee

Also assuming you and sibling were named trustees of this house trust, there are land registry formalities required to reflect this.

Finally I have to confess, for such a small joint estate have to question the wisdom of this trust arrangement for your mother's half share. Could prove more trouble than it's worth and may have made more sense to have simply left her half share to your father outright.


 

Keep_pedalling

Ifs the current house in his sole name? 

jem16

poseidon1 said:

Finally I have to confess, for such a small joint estate have to question the wisdom of this trust arrangement for your mother's half share. Could prove more trouble than it's worth and may have made more sense to have simply left her half share to your father outright.


 

Often done to avoid care home fees. That was my mother’s whole thought process and nothing could persuade her otherwise. We later found that she thought if you went into care they took her house even if she died the day afterwards. 

jem16

Keep_pedalling said:

Ifs the current house in his sole name? 

The OP says his mother’s name is on the Land Registry as joint owner (tenants in common)