Probate: 99%/1% property

pw1970

A property is split between a son and mother with a 99% / 1% split in the sons favour. The mother lives in the property and has rights to live there until she passes on.

He is now deceased, with his will stipulating that his 99% is left to his daughter.

Ideally it would be good to resolve this before the mother passes on, and put the property 100% in the daughters ownership.  With the 1% cash equivalent given to the mother.

I believe a property valuation is required, and would like to achieve the transfer with the least cost legal wise.

So suggestions and guidance would be appreciated.

Cheers 

Ms_Chocaholic

How old is the mother, if quite old is it worth just hanging on till she dies.

pw1970

In her mid 90s. One issue is the many siblings the son has, feel they, or some, could frustrate the process, even try get the situation overturned so they'd have a better share of the property.  So feel it best to resolve whilst the mothers alive.

Keep_pedalling

Did his will state that his mother could continue living in the property? If it did (as it should) then the will creates an emmediate post death interest trust which means his daughter does not own 99% the trust has legal ownership and his mother beneficial ownership until her death or a point where she decides to or has to move out..

What is the value of the property and how did this unusual split in ownership happen? I ask because if this was because of a gift from his mother it could create some IHT complications for both estates. 

pw1970

That she can remain in the house is written down somewhere, probably the declaration of trust I think.

I did not know about the immediate post death interest trust, that's very useful to know.

Did you mean 'now own' and not 'not own'? 

The property is probably worth about £230k ish

I think it came about as the mother didn't have the funds to buy the house, but the son did, hence the sharing of title in his favour.

RAS

Right to Buy?

pw1970

Revisiting this …

The will did not state the daughter would get her father's 99%, but that she could reside in the property post death of grandmother if she wanted, or if not executor could rent the property, or sell the property and give proceeds to the daughter.

Really the daughter should get the property, as her two brothers get equivalent inheritances which are clearly expressed in the will, which is the executors wish.

Yes there is something to be said for waiting for the grandmother to pass, but she wants to 'cash in' her 1% asap.

So back to buying the 1%, and putting the property 100% in the daughters name/ownership.

A value of the 1% has effectively been agreed.

I believe the forms I need to consider are the TP1, TR1 and AP1.

However I'm not sure how it works. The 1% part needs to be transferred but to whom, the executor who effectively owns the 99% or the daughter? The whole title then needs to be then in the daughters name.

Finally grandmother needs something legal to say she can remain living in the property until whatever happens. Declaration of trust does not seem to work here as there would be no tennant in common, so some right to occupy or similar would be required.

Keep_pedalling

Can you provide the exact wording of the clause in the will that refers to the house please? Redact any personal details.

silvercar

Grandma wants to cash in her 1% AND to remain living in the property?

If this was anything other than a very elderly person and an amount greater than 1%, everyone would be rightfully commenting that you can’t have your cake and eat it.