Transfer of inherited property

[DustyMaiden]

I would be grateful if anyone could advise me.

My DH inherited his DM's house, he is the sole beneficiary of the will and the executor.

We would like the house to belong to me because of income tax, house is let. I know that he can apply to vary the will but is there an easier way. Can we just change it with the land registry.

There is no mortgage involved.

See if a Deed of Variation is the way to go.

You will need to pay a solicitor who may help you with some of the pros and cons.

Gingenaut

Thanks I will look at that

It might be a good idea to talk to an accountant too, to make sure neither of you encounter any capital transfer liabilities in the future. Allowances and liability regulations seem to change quite regularly.

Good advice above. Sounds like you are married for from a potential future divorce (sorry) point of view will not matter whose name assets are in.

My father did a will variation when our mother died to pass some assets to us more quickly not that it helped reduce inheritance tax as he then died soon after. Let us assume the estate is below inheritance tax levels here.

If you do not do a will variation then your husband inherits and then passes to you (as no mortgage there is no stamp duty land tax by the way) immediately so no capital gain between the time he owns and you own but it may appear he is putting an asset away to avoid tax (he is) so it might look at bit better (not that I think lawful tax avoidance is wrong actually - it';s a moral good in my book), if it went straight to you and you would not then need two changes of ownership at the Land Registry. I think the will variation is the better course. I am assuming there is no dispute over the will with other siblings fighting for a share.

So will varied, then property transferred to your name, tenancy varied - check the terms but I doubt the tenants will be bothered who is the landlord but they will want it formalised before they pay rent somewhere else and you will need to do something about registering under one of the landlord deposit schemes - you personally ; rent paid to you instead which is probably not much more annually after costs taken off than your single person allowance. Then when you sell it any capital gain or capital loss is yours, not your husband's in terms of capital tax. May be you both want a share say half held in trust for your children too just to protect the chidlren's inheritance in case of creditors' claims, banktruptcy of the parents later or divorce of the parents. Probably a good idea to pay for an hour to sit down with solicitor and talk it all through.

Thankyou all, that really helps.