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Legal matters

Mumsnet has not checked the qualifications of anyone posting here. If you have any legal concerns we suggest you consult a solicitor.

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Original poster

Contested will- will house be included in the estate?

13 replies

Yesolafff · 01/04/2021 22:58

DParents have 2 children, myself and my sister.
DParents live with myself, DW, and our 2 kids. The house used to be in 4 equal shares in my name, DW and DParents. DParents then transferred their shares to me and DW but they continue to live in the property with us. If my sister makes a claim on DParent's estate, will the house be included in their estate?

OP posts:

prh47bridge · 01/04/2021 23:33

It won't be included automatically. However, assuming your parents give you their share of the house (i.e. you didn't buy their share from them at full market value) your sister could try to argue that your parents didn't have mental capacity when they made the gift or that they were coerced into making the gift.

SD1978 · 01/04/2021 23:43

Slightly confused- why was the house initially bequeathed to you and your orients, and not to your sister? I believe it would depend on how long ago your parents transferred it, easiest thing would be to check with a lawyer, as it does seem (from the outside) you're deliberately not including your sister.

prh47bridge · 02/04/2021 00:10

I don't think the house was initially bequeathed to anyone. That isn't what the OP says. It sounds like the OP and wife purchased a property with the OP's parents.

If the transfer was less than 6 years ago it may be taken into account if the sister has a claim under the Inheritance (Provision for Family and Dependants) Act 1975. However, unless the OP's sister was financially dependent on her parents at the time of death such a claim is unlikely to succeed.

Original poster

Yesolafff · 02/04/2021 00:48

House was bought in the 70s by DParents. At some point since then mine and DW's names were added to the title. 7 years ago DParents transferred their shares to me and DW but they still live with us.

OP posts:

SionnachGlic · 02/04/2021 01:57

Does your sister not known that you & your wife are legal owners of the house? And what is left in estate?

GeorgiaGirl52 · 02/04/2021 02:26

It may be different where you are, but here the house would not be included in their estate because it is in your names only. When I re-wrote my will this January, I was advised by my lawyer to put the name of the person on the deeds with me as tenants with right of succession so that when I die they automatically become full owners. the property then is not part of the estate.
The same with life insurance. Putting the name of a beneficiary insures that the entire amount goes to the named person. Putting it as part of the estate means it is divided as you specify in the will.
Best to see a solicitor and be certain, especially if your sister is the type to be greedy and grasping.

prh47bridge · 02/04/2021 09:32

@Yesolafff

House was bought in the 70s by DParents. At some point since then mine and DW's names were added to the title. 7 years ago DParents transferred their shares to me and DW but they still live with us.

In that case the house cannot be brought into the estate through the Inheritance Act as your parents gave it to you too long ago. If your sister wants to claim part of the house, she will have to argue that your parents did not have mental capacity or that they were coerced into making the gift.

Original poster

Yesolafff · 02/04/2021 11:25

A solicitor dealt with the transfer so hopefully my sister will find it difficult to contest. My DParents have not left her anything under their wills because her and her son are estranged from our family, they have taken £10,000 from us and not paid it back
They should do letters of wishes shouldn't they?

OP posts:

Original poster

Yesolafff · 02/04/2021 12:01

Although the property is a gift with reservation of benefit as it was transferred over 6 years ago it won't be included for inheritance Act claims?

OP posts:

prh47bridge · 02/04/2021 12:21

It is unlikely your sister has an Inheritance Act claim as she was not financially dependent on your parents. However, the reservation of benefit complicates things and may mean that the house is part of the estate, at least for IHT purposes. Consult a solicitor.

Original poster

Yesolafff · 02/04/2021 14:23

@prh47bridge

I am myself a private client solicitor but have never come across my own personal situation before

OP posts:

TantrumInTheGarden · 02/04/2021 15:37

@GeorgiaGirl52 if the estate is otherwise liable to inheritance tax, wouldn't that be tax evasion? Surely if this was legal everyone would be doing that to avoid the 40% tax?

GeorgiaGirl52 · 02/04/2021 19:20

@TantruminTheGarden
No, it is legal where I am. It is not the same as gifting property. It is just adding a name. The same as if someone married and added their spouse's name. That is why I checked with a lawyer first. The reason it is not done more frequently with parents and children seems to be that parents don't trust their children or that parents are afraid that their children might get divorced and the property be subdivided or forced into a sale.

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