Inheritance advice

Can anyone give me some advice please

My mother has owned her house since 1951 and married my father six years later but his name has never been on the title deeds (although of course he has contributed all over the years).

The current value of the house is approx £250,000 but it could be a bit more than that, getting close to the IHT threshold I know. They have a retirement investment of around £25,000 but that is in my father's name.

I am an only child and my mother wants me to inherit the house eventually and so in her will she has left the house to my father for his lifetime and then to me afterwards.

Is that the best way of doing things? My mother is 11 years older than my father and now is approaching 90. They are both in pretty good health. My father seems to be happy with the will and I would naturally help him if my mother dies first as they live close to me.

Should I be asking her to put both my father and my names on the deeds or just mine or is there another way?

Reply to
MattM
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In message , MattM writes

This grants him an interest in possession and on his death the then value of the house will be added into his estate for IHT and there may be IHT to pay at that time, but not much, if any, based on the figs you quote unless house price inflation continues.

The snag here is that your father may need capital to fund rest home fees or wish to 'trade down' to more appropriately sized accommodation and a trust may restict this, especially if you die before him.

Is it your mothers intention, and your wish, that you receive the actual building or would its cash value be acceptable?

This would make him a joint owner ands the house would become his absolutley and he could leave it to anybody

NO ! Dont do this!

Or this!

Yes, but this would enable your father to do what he wants with the house after your mother dies but you get the cash value of what is left.

Your mother writes a will leaving unspecified assets up to the value of the Nil Rate Band for Inheritance Tax operating at the time of her death, (currently £263000) to a trust of which you are the beneficiary when he dies.. She leaves the house to your father and the trust is empowered to accept an IOU from your father for the Nil Rate Band amount in lieu of the house. Your father is NOT a beneficiary of the trust.

He then owns the house absolutely but owes the trust the Nil Rate Band amount.

When he dies his estate must settle the IOU to the Trust (assuming he hasnt spent it all), and the trust pays out to you. If youi father has left the house to you, then you get the house in settlement of the IOU and as beneficiary of your father's estate.

Reply to
john boyle

Aren't transfers between husband and wife exempt?

Reply to
Jonathan Bryce

Thanks for the advice, i've got a couple of points though

1)what is the problem with my name going on the deeds now - is it CGT? 2)if my father owes me the Nil Rate Band and then needs long term care does that IOU stop the local authority getting their hands on the house (although of course I would want him to have a decent care home if that situation arose)
Reply to
MattM

Yes. How is that relevant?

Reply to
john boyle

In message , MattM writes

Yes plus your potential bankruptcy, death, divorce, estrangement from your father, father remarrying to a woman you detest etc., etc.,

NO, he owes the NRB to the Trust of which you are the beneficiary.

No.

Good. I am glad you dont fall into that category of people who are looking for loads of ways to stop the Local Authority taking a charge on the house and in so doing are committing their parents to live in a smelly smelly pit.

Reply to
john boyle

In our borough you end up in the same home, however it's funded.

Reply to
stuart noble

In message , stuart noble

Reply to
john boyle

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