Need UK Estate legal advice

lisabarr

<font color=blue>Caused an uproar over Tag Fairy v
Joined
Mar 20, 2005
Messages
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Hi. I do not normally post here, but I hope you all can help.
My Dh's father died this week. He is from the UK and the father left him the house free and clear. Mother is still alive and in a nursing home due to a bad fall. she will likely never leave. My DH is over there now sorting things out.

My husband was named executor and mom has signed over all interest in the house.
What are the UK tax implications and or USA if any. Also my DH has a cash offer for the home as-is. The man will give him a cashiers check on monday. Can he do that?
Any advice appreciated.
We live in Florida, so the quicker we tie this up, the better!
 
I would advise you get a solicitor to look at it for you, there will be tax implications depending on the value of the estate. I would get the property valued by an estate agent ( should be free of charge)to make shore you are getting a fair offer allowing for the hassle and extra cost the quick sale will save you. Also be aware that the cost of nursing may eat into the value of the estate if mum has any entitlement over it.This is always a big problem with inheritance in this country if not set up correctly.
PS this is only my opinion, I have no legal training.
 
I'm pretty sure you have to get an estate agent to look at the house and also the tax people will send round an agent to look to. We sold my grandads house in February due to his death, the estate agent came in and said right all i'm doing is looking for the bad, so they found all the things that could bring the price down, as bad as it was it actually works in our favour. She also advised us to clear all the pricey stuff out of the house. I'm not sure if the rules have changed, but that was our advice to us.
 

An Executor is the person appointed in a will to wind up the estate in accordance with the deceased's wishes. An Executor may also be a beneficiary, but not necessarily so. Is your husband the sole Executor and sole beneficiary of his father's will?

Where a property is involved, Probate will always be required. Before he can sell it, the property will first need to be transferred to your husband. Although the two transactions could take place simultaneously, the transfer to your husband can only happen as part of the overall administration of his father's estate. All the assets and liabilities will need to be taken into account in order for an application for a Grant of Probate to be made. It's at this point that an assessment for inheritance tax will be made. If such tax is payable, it needs to be made at this point (i.e. before any assets are sold), so it's often necessary for a loan to be taken out by the Executor(s) for this purpose. Once the Grant of Probate is obtained, any liabilities of the estate (including any loan for inheritance tax) must be paid before the assets are distributed to the beneficiaries.

When you say that dh's mother has signed over her interest in the property, what exactly was her interest? Was she a joint owner? If so, there are two ways in which the property could have been held - jointly, or as tenants in common. If the property was held jointly, it automatically passes to her and will not form part of the estate. That's good in a way, as it will probably mean that the estate won't be big enough to attract inheritance tax. I can see a couple of potential complications, though. If mother gifts the house, capital gains tax will be payable on a sliding scale if she dies within 7 years. How are her nursing home fees funded? It's unlikely that she would be able to give away an asset and then rely on the State to fund her care.

If the property was held as tenants in common, father and mother would each have held a percentage of the property which they can bequeath separately in their wills. This is common where divorcees or widows/widowers, each with their own children, re-marry and buy a property. What would then normally happen is that the surviving spouse would remain in the property until their death when the property would be sold and the proceeds distributed in accordance with the individual wills.

Even if the property was vested in father's name alone, mother would have an equitable interest. Whatever her interest, it would have to be transferred legally.

For both the Probate and the transfer of property, your husband is going to need the services of a Solicitor. Whilst I understand your desire to tie things up quickly, there is a process which has to be followed and it's likely to take months, rather than weeks.
 
just adding: you shouldn't ask an estate agent to value the property if you have no intention of putting it on the open market. An estate agents valuation is for that purpose only, a chartered surveyor should value in all cases where there are likely to be legal implications on sale.
The estate agents valuation will never stand up in court as its based on comparables only. Any 'free' valuation is not worth the paper its written on.
 
Thanks for all the responses. I think DH has been convinced to slow down and relax. He won't be able to do anything in the few days he is there. He is going to talk to a solicitor and get things moving that way.
 














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