how does inheriting a house work
Discussion
A500leroy said:
hi guys
When my dad dies the house we live in goes to my mother and I, we want to continue living in it. Would we have any tax or anything to pay when the time comes?
Cheers.
It'll be up to your mother. She will own the house; whether she will let you stay for free, stay for £ or kick you out is up to her When my dad dies the house we live in goes to my mother and I, we want to continue living in it. Would we have any tax or anything to pay when the time comes?
Cheers.
As for IHT/estate size I'll let someone more expert deal.
Jasey_ said:
Simpo Two said:
A500leroy said:
hi guys
When my dad dies the house we live in goes to my mother and I, we want to continue living in it. Would we have any tax or anything to pay when the time comes?
Cheers.
It'll be up to your mother. She will own the house; whether she will let you stay for free, stay for £ or kick you out is up to her When my dad dies the house we live in goes to my mother and I, we want to continue living in it. Would we have any tax or anything to pay when the time comes?
Cheers.
As for IHT/estate size I'll let someone more expert deal.
Which I believe simply complicates things massively from a IHT point of view.
But I'm no expert either
.I think for anyone to help they will need the approx value of the house and the rest of the estate as a minimum !
Will also need clarification of "go to" - Does this mean the father's will states his estate is to be split 50/50 with his Wife / Son.
If just to his mum, fairly straightforward...(If these things are ever straightforward)
Plus some primary residence nil -rate £175K
But probate always comes before inheritance.
AND don't bank on inheritance ! Your parents might divorce / not die in the order you are expecting etc.
I remember overhearing a young lady in the London Probate office finding out that her Stepdad wasn't married to her Mum , that he was still married to someone she considered to be an "Aunty" and that there wasn't any provision for them .
But probate always comes before inheritance.
AND don't bank on inheritance ! Your parents might divorce / not die in the order you are expecting etc.
I remember overhearing a young lady in the London Probate office finding out that her Stepdad wasn't married to her Mum , that he was still married to someone she considered to be an "Aunty" and that there wasn't any provision for them .
No tax implications on those facts.
Two notes of caution though,
Why the 70/30 split?
What if she dies first?
etc, etc
Two notes of caution though,
- If Dad makes/has made gifts in the "£hundreds of thousands" bracket in the 7 years prior to death there could be IHT (for your share, not your Mum's)
- If Mum is wealthy (again, "£hundreds of thousands") there could be future IHT considerations.
Why the 70/30 split?
What if she dies first?
etc, etc
A500leroy said:
estate value less than 190k, 70/30 split
As rockin has already said, there is no tax to pay.Not only does the estate fall below the IHT threshold but transfers to spouses are exempt from IHT anyway.
Even if it was you inheriting 100% of the estate there would be no tax to pay,
I’m not an expert so this might be crap but get the property to just go to your mum assuming you have a good relationship with her. You then have time to arrange it to go to yourself tax efficiently.
If you want cash in theory she could release cash from the house and give you as much as you want tax free AS LONG AS SHE LIVES 7 years after the gift.
Please check this as might not still apply.
If you want cash in theory she could release cash from the house and give you as much as you want tax free AS LONG AS SHE LIVES 7 years after the gift.
Please check this as might not still apply.
SimonTheSailor said:
Probate isn't mandatory though is it ? If it's clear cut then house can just be put in wife and son's name ?
What a strange statement! You imply that if all is clear cut then probate is not required. Probate or getting a grant of administration is required before any asset of a deceased person can be transferred to another party, and IHT if any is due must be paid before probate etc is granted.You are right that the house ownership can be changed but this will need to be done before the death of the owner of the house so it does not form part of that person's estate.
R.
SimonTheSailor said:
Probate isn't mandatory though is it ? If it's clear cut then house can just be put in wife and son's name ?
If the house was jointly owned ( and no mortgage or other interests in it ) - and it was , together with all other assets going to the mother - then possibly not. Add a split between Mother and Son , pretty much required.
Thank you. I should have been a bit more specific. I think everybody believes it has to go through Probate (and sometimes costs thousands) but in certain instances it does not.
When my father died every was left to my mother. My brother and I and my mother were executors and we carried out his wishes. The estate was worth under the limit for IHT so we just got on and did it.
When my father died every was left to my mother. My brother and I and my mother were executors and we carried out his wishes. The estate was worth under the limit for IHT so we just got on and did it.
DSLiverpool said:
I’m not an expert so this might be crap but get the property to just go to your mum assuming you have a good relationship with her. You then have time to arrange it to go to yourself tax efficiently.
If you want cash in theory she could release cash from the house and give you as much as you want tax free AS LONG AS SHE LIVES 7 years after the gift.
Please check this as might not still apply.
First 4 words are the relevant ones- "i'm not an expert" nothing wrong with leaving part of house to son and can have advantages in certain circumstances.Original poster does say anything about wanting cash and equity release schemes generally only benefit the loan company. If you want cash in theory she could release cash from the house and give you as much as you want tax free AS LONG AS SHE LIVES 7 years after the gift.
Please check this as might not still apply.
Would need full details of estate cash etc to give an overview of IHT, bit seems as will be below threshold.
May be reason for 70/30 split that poster not given. Presume that if mother passes away first house will become poster home so no tax to pay for increase in value from date of inheritance to selling etc if its his main residence. If he owns another house this would complicate matters
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