Property and inheritance

[dreaddan]

I wanted to check something about property and inheritance as I think someone has been given duff advice. I assume SPL is better than Homes etc…
So a unmarried couple bought a house and put it in joint names (I assume 50/50 split), and separated after having some children with the mother living in the house.
If either parent dies who does their share of the property go to?

Thanks
Dan

[TooMany2cvs]

dreaddan said:

I wanted to check something about property and inheritance as I think someone has been given duff advice. I assume SPL is better than Homes etc…
So a unmarried couple bought a house and put it in joint names (I assume 50/50 split), and separated after having some children with the mother living in the house.
If either parent dies who does their share of the property go to?

Tenants-in-Common or Joint Tenants?

But, either way, standard intestacy rules apply.

[dreaddan]

Hmm I dont know I'll see if I can find out.
But if it is joint tenancy then wont the property go to the other owner regardless of a will or not?

[John145]

If it's joint tenants the surviving owner gains full ownership regardless of any will to the contrary.

[dreaddan]

Hmm I'm even more confused now..
Accoring to the land registry
[i]Beneficial joint tenancy -> If you die, your interest in the property passes automatically to the other owner or owners.
Tenancy in common -> You can give away, sell or mortgage your share. If you die, your share of the property passes to the beneficiary in your will.[/i]

[caiss4]

dreaddan said:

Hmm I'm even more confused now..
Accoring to the land registry
[i]Beneficial joint tenancy -> If you die, your interest in the property passes automatically to the other owner or owners.
Tenancy in common -> You can give away, sell or mortgage your share. If you die, your share of the property passes to the beneficiary in your will.[/i]

Yes, that's correct. If your parents, for example, are planning their inheritance tax liability then the normal procedure is to ensure that co-owners are tenants in common. This allows either partner to bequeath their 50% share to whom they like upon their death (normally their children) and take advantage of their own inheritance tax threshold thus reducing the liability for IT on the remaining estate upon the death of the second partner.

[dreaddan]

Cheers.

[3Dee]

Absolutely THIS

Beneficial joint tenancy -> If you die, your interest in the property passes automatically to the other owner or owners.

So it effectively passes outside the Will (or Intestacy)!

... however... for IHT purposes the deceased 'share' of the house has a notional value which must be added to the rest of hi/ her estate for IHT liability calculations (especially since they are not married)

Think of it like a joint bank account - on death of the first, the other gains title to the whole of the account proceeds.

[pork911]

on the split was there any agreement?

[dreaddan]

No idea if there was a agreement, probably not by the sounds of it.

Thanks for all the help guys, I wanted to check if the advise was sound on not.

[anonymous-user]

caiss4 said:

dreaddan said:

Hmm I'm even more confused now..
Accoring to the land registry
[i]Beneficial joint tenancy -> If you die, your interest in the property passes automatically to the other owner or owners.
Tenancy in common -> You can give away, sell or mortgage your share. If you die, your share of the property passes to the beneficiary in your will.[/i]

Yes, that's correct. If your parents, for example, are planning their inheritance tax liability then the normal procedure is to ensure that co-owners are tenants in common. This allows either partner to bequeath their 50% share to whom they like upon their death (normally their children) and take advantage of their own inheritance tax threshold thus reducing the liability for IT on the remaining estate upon the death of the second partner.

When one dies, their nil rate band can be passed on to their spouse, who will then have that plus their own allowance. No need any more to hand things down to kids or anyone else.