I was left half a house

DevilsAdvocate1

My mam was always convinced she would die young and was worried my dad would remarry. She wanted to make sure that I (her only child) would receive her share of the house so when they bought it they had it registered so that they each owned a 50% share.

My died nearly 5 years ago. In her will, she left me her money, her share of the house and any ornaments that I wanted. I received the money shortly after. My dad did the probate.

However, it upset him at the thought that my mam's name would not be on the deeds anymore, so the house remains in her name. I think he is also worried that if anything happened to me my husbands or sons could force a sale. Personally, I think this would not happen and know I would not do this. I can't see my husband or sons doing this.

Now nearly 5 years have passed, dad has agreed for me to remove mam from the deeds and to add myself. How do I go about this and how do I make sure my dad's position is secure (incase something happened to me).

Thank you.

Brie

not sure about the deeds but you could put your dad in your will giving the house back to him. or some people put things in a trust of some sort so dad would have full use of the place until he dies or moves. I don't think that's really necessary for you - more a case of if there are step parents involved.

the only way that your husband/sons could force a sale is if you were incapacitated and they had control of your finances. And it would still be difficult if dad was about and able as it's half his house so would involve a fair bit of legal hocus pocus to make him sell as well.

GrumpyDil

Hm, I won't comment on the technicalities of registering the transfer but you do realise that if you own a house which you are not living in, you will be liable to pay capital gains tax on your share?

MasterG83

https://forums.moneysavingexpert.com/discussion/comment/81946343#Comment_81946343

Also this could also mean an enquiry from HMRC against your dad and the rent he pays to you, or not, for the other 50% of the property.

RAS

What exactly did mum's will say about dad living in the house after her death? If you don't know, you can download a copy from the Probate Registry. Do use the gov.uk website as it is a lot cheaper than the fake ones.

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/81946358#Comment_81946358

This is very important, as the normal approach would be to leave their share of the house in trust as this protects both the surviving spouse and the ultimate beneficiary and it is also the most tax efficient way of doing it. If this was done there would have been a clause giving your father the right to remain in the house for as long as he wished.

If the will did create a trust then you need any change on the LR to reflect that rather than simply put it in your joint names. The trust should also be registered with HMRC.

Who were the executors of her will?

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/81946413#Comment_81946413

An earlier post back in 2021 suggests there was a trust embodied in a solicitor drafted will in 1990 for the mother, but was sadly replaced by a (badly) prepared DIY will produced by the father in 2015 - see below

https://forums.moneysavingexpert.com/discussion/6307601/will-or-gift

Short Of the OP supplying the precise wording of the DIY will, no idea whether the trust in the original 1990 will was preserved in the father's DIY version.

The OP needs to ascertain whether or not , the right of occupation established under the 1990 professional will, was retained in the later version. If the trust survived, there is a whole other alternative course of action required here, including HMRC trust registration.

DevilsAdvocate1

My dad was the executor. They did not use a trust or anything like that. When they bought the house they did it in such a way that dad owned 50% and mam owned 50%. Mam was very worried about dad remarrying as she was nearly 10 years older than dad. Although the wills were signed by witnesses, they did them themselves to save money, which I realize was probably a bad idea. Mam's will stipulated that I was to receive her half of the house, plus her money, jewelry and any ornaments that I wanted.

I think she thought it was straightforward as I'm an only child and would never try to force a sale. Even taking into account the house, it falls well below inheritance tax thresholds - we live in the northeast. House is probably worth around £200K, so my share around £100K. Her money was around £25K and jewellry maybe another £1K.

Keep_pedalling

Unfortunately in the long term the decision to DIY the will is likely to cost more than it saved. Unless you still live in the family home you will probable face a CGT liability if the house is sold at some point in the future and if you don’t already own your own home you will have lost your first time buyer status and would have to pay additional SDLT if you do buy your first home while still owning a share of the family home.

Did your father apply for probate for your mother’s estate? If not that is the first step required to get your share of the home transferred to your name. As you mother died in 2021 he will also have to file an IHT return using IHT 205.

DevilsAdvocate1

Thanks. I already have my own home with a mortgage. I wonder if dad could change his will to make a trust, then I would only have to pay CGT on mam's half? I think probate was done. Will have a chat with him next time I see him. My cousin is visiting this weekend and I know she has just done something similar for her sons. She is staying with dad, so I will also get her to talk to him.

DevilsAdvocate1

Wow, I completely forgot I posted that. Dad wouldn't talk about it, so I just left it. He is more open now. It will be 5 years in September.

He is 86 now, will be 87 soon. Still in great health. We even managed to tale him ten pin bowling last month!

There's a lot to unpack I think. I will start this weekend and also have a chat with my cousin. She is a very savvy lady and will explain things better to dad than I can.,

Thanks for all the replies. I really appreciate them.