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  • FIRST POST
    • amnblog
    • By amnblog 11th May 18, 10:15 AM
    • 10,648Posts
    • 4,215Thanks
    amnblog
    Property in Trust on Death
    • #1
    • 11th May 18, 10:15 AM
    Property in Trust on Death 11th May 18 at 10:15 AM
    In my late Father in Law's Will he has put his share (Tenants in Common) of the main asset (property) in Trust for his Partner (not wife) to continue to use in her lifetime.

    On her death his share of the value of the property (50%) is left to his Son and Daughter.

    My thinking here is that we need to get a current valuation on the property to complete the IHT forms, as the asset is now effectively gifted but currently in Trust.

    The value is under the IHT Threshold so their wont be Tax either way, but my thought was that the asset value has transferred to his beneficiaries but held in the Trust?

    What's the view out there?
    Last edited by amnblog; 11-05-2018 at 2:01 PM.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
Page 1
    • Marcon
    • By Marcon 11th May 18, 10:57 AM
    • 362 Posts
    • 247 Thanks
    Marcon
    • #2
    • 11th May 18, 10:57 AM
    • #2
    • 11th May 18, 10:57 AM
    Give the Government probate/IHT helpline a call: 0300-123-1072
    • Keep pedalling
    • By Keep pedalling 11th May 18, 12:53 PM
    • 5,210 Posts
    • 5,813 Thanks
    Keep pedalling
    • #3
    • 11th May 18, 12:53 PM
    • #3
    • 11th May 18, 12:53 PM
    Having such a valuation will be useful for when the property is eventually sold where they may be a capital gain that tax may be due on.
    • amnblog
    • By amnblog 11th May 18, 2:17 PM
    • 10,648 Posts
    • 4,215 Thanks
    amnblog
    • #4
    • 11th May 18, 2:17 PM
    • #4
    • 11th May 18, 2:17 PM
    It just occurred to me that I am assuming the tenants in common is held at 50/50 but this may not be the case.

    Any idea's how I may get information on this (not practical from the owners due to health).
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Yorkshireman99
    • By Yorkshireman99 11th May 18, 3:46 PM
    • 4,325 Posts
    • 3,539 Thanks
    Yorkshireman99
    • #5
    • 11th May 18, 3:46 PM
    • #5
    • 11th May 18, 3:46 PM
    It just occurred to me that I am assuming the tenants in common is held at 50/50 but this may not be the case.

    Any idea's how I may get information on this (not practical from the owners due to health).
    Originally posted by amnblog
    You need to look at the Land Registry entry. Note that my not be definitive about the TIC or JT issue so you may need to do some research wth the wills or trust documents on that.
    • Keep pedalling
    • By Keep pedalling 11th May 18, 5:24 PM
    • 5,210 Posts
    • 5,813 Thanks
    Keep pedalling
    • #6
    • 11th May 18, 5:24 PM
    • #6
    • 11th May 18, 5:24 PM
    You need to look at the Land Registry entry. Note that my not be definitive about the TIC or JT issue so you may need to do some research wth the wills or trust documents on that.
    Originally posted by Yorkshireman99
    The % split will only show up on the LR if a deculation of trust was registered with them. The DoT does not have to be registered, but if not tyou would hope it would be stored with his will or some other. Easy place to find it.
    • getmore4less
    • By getmore4less 14th May 18, 10:38 AM
    • 32,423 Posts
    • 19,480 Thanks
    getmore4less
    • #7
    • 14th May 18, 10:38 AM
    • #7
    • 14th May 18, 10:38 AM
    In my late Father in Law's Will he has put his share (Tenants in Common) of the[B] main asset (property) in Trust for his Partner (not wife) to continue to use in her lifetime.

    On her death his share of the value of the property (50%) is left to his Son and Daughter.

    My thinking here is that we need to get a current valuation on the property to complete the IHT forms, as the asset is now effectively gifted but currently in Trust.

    The value is under the IHT Threshold so their wont be Tax either way, but my thought was that the asset value has transferred to his beneficiaries but held in the Trust?

    What's the view out there?
    Originally posted by amnblog
    You have an IPDI trust.

    There is a potential issue with these to non spouse in that the value in the trust is treated for IHT/CGT purposes as if it belonged to the life tenant BUT they don't get any transferable nil rate band.
    • amnblog
    • By amnblog 14th May 18, 11:21 AM
    • 10,648 Posts
    • 4,215 Thanks
    amnblog
    • #8
    • 14th May 18, 11:21 AM
    • #8
    • 14th May 18, 11:21 AM
    yes GMFL I expect the total Estate to be under 300,000 in any case.

    My understanding is the death is the chargeable event for IHT so I need to get a valuation now (and establish the share).

    The beneficiaries will be subject to CGT on any growth between now and when the property is sold following the death of the other Tenant in Common.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • getmore4less
    • By getmore4less 14th May 18, 11:44 AM
    • 32,423 Posts
    • 19,480 Thanks
    getmore4less
    • #9
    • 14th May 18, 11:44 AM
    • #9
    • 14th May 18, 11:44 AM
    yes GMFL I expect the total Estate to be under 300,000 in any case.

    My understanding is the death is the chargeable event for IHT so I need to get a valuation now (and establish the share).

    The beneficiaries will be subject to CGT on any growth between now and when the property is sold following the death of the other Tenant in Common.
    Originally posted by amnblog
    Not if it is a IPDI trust

    The life tenant holds the beneficial interest for tax purposes then as long as they live there they get PRR if they sell and there is no CGT on death events.
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