Declaration of Trust

[coinbase]

In 1992 my wife bought a property for her mother and registered the property in her mother's name. Under a Declaration of Trust my wife will take ownership of the property upon her mothers death. Her mother died recently and my wife now wants to take title on the property.
She has read the Government website explaining how to do this but one question the site asks is: Did you inherit the property?
My question is: is my wife considered to have 'inherited' the property or is she just a 'third party name' to the transfer of title?

[AGoodman]

[Not a tax question!]

No, this would not be an inheritance.

As to the correct answer, I don't know which issue/website you are looking at. Is it the Land Registry? I don't understand "third party name".

If your wife is an executor, she can appoint herself as trustee of the trust and transfer it from the estate (as executor for her mother) to herself (as new trustee). She will then be registered (legal) owner and absolutely entitled as trustee so no further action is likely to be necessary. There may be a simpler way or she may also need to remove any restrictions on the title (one is usually added when, as here, the registered owner is a trustee).

Worth checking this with a conveyancing solicitor.

[coinbase]

Many thanks AGoodman.

No, my wife is not an executor and there is no will. But the DoT makes it quite clear my wife can now take title. I presume Land Registry hold a copy of the DoT.
I think the 'inheritance' issue makes my wife question whether inheritance tax might become an issue but as you say, she has not inherited the property.

She will endeavour to negotiate the Gov Land Registry website again.

Thanks again.

[AGoodman]

Inheritance tax is definitely an issue to consider as your mother in law had a life interest in the property. For inheritance tax, it is treated as part of mother's estate but the estate will likely benefit from the "reverter to settlor" exemption. See https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm16121 for more information. This should mean that there is no inheritance tax to pay on the property.

Unfortunately this also means that your wife will receive the property at the 1992 value so, if she sells, will make a capital gain on the sale price minus the 1992 value. (Google CG36305)

The DoT will say that your wife becomes absolutely entitled to the beneficial interest in the property but, unless she is a co-trustee, it is likely she has to jump through additional hoops to get the legal (registered) title transferred to her. The Land Registry won't have a copy of the declaration of trust as they are solely concerned with the legal ownership, and there is currently no legal owner (the sole trustee having died). The administrators of the estate (your wife may be one of, or the sole, administrator) could probably transfer it to her (although that's probably a shortcut rather than the "proper" way). The administrator(s) would need to take out letters of administration in mother's estate to do this (letters of administration are the name for probate where there is no will) and there will be IHT forms to complete, possibly for both the estate and the trust of the property.

If the property has any value, it is likely worth getting some help from a solicitor specialising in private client / estate planning work.