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Legal matters

Probate queries - tenants in common

2 replies

buckeejit · 19/03/2023 16:15

My mum died in Dec 21 & dad died last month. Just found out that probate wasnt done for mum & wondering if its too complex to complete myself rather than paying solicitor 1%+VAT for each estate. Or can I pay by the hour to clarify my thinking and ask a few queries.

Here's what I have as a summary & list of questions. Would be most grateful if anyone knows the answers or could suggest if this is still straightforward enough to tackle myself. PArents had all paperwork together and accessible. Estimate house to be worth £300k at all valuation dates, mum sole accounts total £7k & joint accounts maybe £50k. Thanks in advance for any assistance

Parents estate
01.03.16 – Gifted £30k each to 4 children
25.07.17 – House transferred to tenants in common.
parents-25% each, 4 children – 12.5% each

29.12.2021 – mum died
’21 -

Assets/values to be included for mum's estate for IHT purposes :
at Date of Death – 25% of house value as tenant in common share
value of 100% of cash gifts to children in 2017 – not 50% as half from dad? Is it possible to deduct the £3k cash allowance from each £30k gift?
youngest dc didn’t receive cash directly - £30k reduction in purchase of parents' previous house which would make it up to market value.
Should we just treat as £30k gift?
Value of 50% of house value (portion gifted to children) – not 50% of that as half from dad?
Bank accounts solely in her name, (not joint bank accounts)

Is nil rate band only for excepted estates for deaths after 01.01.2022?

Forms to complete
for mum's estate
NIPF1 (we're NI so slightly different form)

Should we use the following?
IHT436 – use nil rate band
IHT404 – jointly owned
IHT406 – sole name accounts
IHT408 – donate furniture to charity
04.02.2023 – dad died

Any % of unused IHT allowance for mum can be transferred to dad?

When house/land disposed of, capital gains tax to be calculated as difference between 50% of valuation from 2017 to 50% of sale price.
If land registry redrawn (for separation of house and creation of site on land beside), can/should we add the 4 spouses as tenants in common to spread CGT liability and utilise their allowance?

Any extra considerations other than added value if land separated from house for another site & sold off with planning permission?
Or retained by children?
Does probate for mum need to be completed before beginning probate for dad?

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plumfy · 19/03/2023 16:19

This is too complicated for a message forum. You need to check there isn't a reservation of benefit in the percentages of the house given to the children if they didn't occupy the house with the parents. You can pay for some advice and ask for a fixed fee.

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buckeejit · 19/03/2023 16:57

That's good to know thanks @plumfy (there was a reservation of benefit as parents lived in the house & no dc did). Parents wills just left everything to each other, then split between dc.

So, if I showed this list of queries to a solicitor, would they then be able to state approx what their fixed fee would be & also if there's other aspects I've not considered?

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