Imagine this, Dad dies, solicitor draws up a deed of variation so that his half of the house goes to three children. One child dies within two years but her share of house is not declared part of her estate. All her assets pass to her husband. He dies two years later. Obviously his share of house is not declared part of his estate. All his assets go to his daughter. Mum dies six years later. Her half of house is liable to IHT but what about the 'one sixth' of the value. Is there anything to declare/pay. Should we contact the Land Registry? Attempt a DIY probate or get the solicitors involved?
Probate complication
- Thread starter Chrismitch
- Start date
If the child inherited a sixth of the house on her father's death, I don't understand why this was not declared as part of her estate when she died? And the same when her husband subsequently died? I think you need to get a solicitor involved to sort it all out.
I'm with arielsmelody: if the child owned her share at the time of her death, why wasn't the ownership declared? I cannot imagine that this is a DIY situation: you'll need a competent solicitor to sort this out.
You need to look at the value of each estate when the relevant person died. That will mean valuing the 1/6 share on each occasion at the date of death. Bear in mind, you are looking at an open market value. A one sixth value of a house isn't going to be worth one sixth of the value of the whole; a discount will be applied to the value to reflect other owners as it's very difficult to sell a one sixth share of a property.
Whether any tax is payable on each death will depend on whether or not the deceaseds' estates i.e the child being the first death then her husband's is liable to IHT? If not, would it have been liable if you add on the value of 1/6th share. You do need professional help with this. I'd be inclined to go to a good private client accountant as they should be able to deal with the tax side and will be cheaper than a solicitor. They can get a solicitor involved if they need to.
As far as the mother's one half share, the value of that, again half the open market value of the property at the date of her death, less discount to reflect multiple ownership is what should be on her probate form/iht return.
Whether any tax is payable on each death will depend on whether or not the deceaseds' estates i.e the child being the first death then her husband's is liable to IHT? If not, would it have been liable if you add on the value of 1/6th share. You do need professional help with this. I'd be inclined to go to a good private client accountant as they should be able to deal with the tax side and will be cheaper than a solicitor. They can get a solicitor involved if they need to.
As far as the mother's one half share, the value of that, again half the open market value of the property at the date of her death, less discount to reflect multiple ownership is what should be on her probate form/iht return.
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I agree with Beetroot. A decent accountant will be able to sort the valuation bits and tax position out and will advise about need for anything further with a solicitor. A decent solicitor would either engage an accountant to do the tax bits or recommend you use one (our trust section is engaged by a couple of solicitors to do the IHT bits for their deceased clients - although the client doesn't always know this)
You may not find 'private client' used by all - our marketing dept ditched that phrase some time ago. But you need accountants with decent tax specialists as this is definitely a very specialist area.
You may not find 'private client' used by all - our marketing dept ditched that phrase some time ago. But you need accountants with decent tax specialists as this is definitely a very specialist area.
I agree with others that you're going to need specialist advice here - the trigger point for IHT may well be when mum (the life tenant) died, not when daughter or her husband died. I would recommend you see either an accountant or a solicitor who specialises in trusts.
