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  1. #1

    Owning part of a property before the resident died

    Hi

    Wondering is anyone can help, feel I need a bit of clarification .

    My Grandad passed away in February, but I owned 1/4 of his home as it was put in my name when he brought the property 6 years ago.

    As the house has now been sold, do I need to wait for probate to claim my 1/4 of the value, or am I entitled to my share straight away?

    I am not entitled to any additional equity as my grandads 1/4 is being passed to my mother (so she will have 1/2 total)

    As it was the sale of an asset I already owned before he passed do I need to wait for probate before accessing the money?

    I understand that my grandads 1/4 that is passing to my mother needs to be processed via probate, but surely not my 1/4

    Many thanks

  2. #2
    I'm therefore assuming that on paper the house was registered in his name, but that you were entitled to a quarter share. This would normally have been documented either in the original transfer to your granddad or in a separate `Declaration of Trust' that would have been signed at the same time.

    If it was registered in your granddad's name probate must altready have been granted, as the house could not have been sold without it.

    Either way, you were entitled to your quarter share on completion of the sale. If you haven't received it you need to ask the solicitors who dealt with the sale why not.

  3. #3
    The Land Registry may be able to throw light on the true ownership at the time the property was purchased.

    It will cost you 7 to find out from them.

    https://www.gov.uk/get-i...nd-land/copies-of-deeds

    But the solicitor should also have a copy of the title deeds, otherwise how could he/she have established that it was part of the estate when carrying out probate or being involved in the sale process?

    It does sound as if either you were entitled to a share under some legal arrangement or that the house was originally bought in the joint names of Dad, Mum & yourself. (As tenants in common? Or as joint tenants?).

    Best to speak to the solicitor to clarify the precise details.

  4. #4
    This is definitely an area where you need professional advice, but as soon as I read your post 2 things jumped out at me.

    1) We have discussed 'reservation of benefit' before on these threads. In seeking to avoid Inheritance Tax, you cannot 'give away' your home to your relatives and go on living in it, unless it is a genuine 'arms length' transaction and you pay the owner a full market rent. If your grandfather was not paying rent to the various 'owners', then the house is likely to fall back into his estate for IHT.

    2) You say the gift was 6 years ago. Again, this is likely to be a 'failed PET' (which requires the donor to live 7 years from the date of gift) with the house falling back into the estate.

    The solicitor dealing with the estate should be able to advise on this.

  5. #5
    I agree with Jeffian This is a gift with reservation and therefore non effective for Inheritance tax purposes unless it can be evidenced that your Grandfather paid rent for your one quarter. It seems to me your mother has the same issue for her share.

    Not aware of how much the value of the property has increased in the 6 years since the ' gift' but unless your Grandfather's estate is greater than the IHT threshold, the matter will be largely irrelevant. If the property is in Joint names on the land registry then the property would pass under survivorship rules to the other persons named.

    If it is deemed tenants in common then this would not be the case and divisible shares would have been created.

    The recommendation that you speak to the Solicitors dealing with the estate and or conveyance following the sale is correct.

 

 

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