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Where Taxpayers and Advisers Meet

Transferring property after death with no will

fabs35
Posts:16
Joined:Wed Aug 06, 2008 3:04 pm
Transferring property after death with no will

Postby fabs35 » Sun May 12, 2024 9:17 pm

Hi

My mother, her brother and his wife lived together in one house, until his death. The property is in his sole name and there is no mortgage on it. Although there is no will in place, there was an understanding that my mother would inherit the property but unfortunately my uncle passed unexpectedly and nothing was agreed formally.

I have done some research and have read that we can apply for a Letter of Administration. It looks straightforward but I have a couple of questions re the taxation aspect:

1) Does the property automatically pass to my aunt or should we process the transfer with Land Registry?
2) The property is worth c.400k - once the property is in my aunt's name, I assume we can transfer it to my mother with no IHT payable as my aunt inherits it on a nil gain/loss basis (and assuming that my aunt is alive for at least seven years at the point of transfer)
3) I assume there is no CGT liability as it has always been their place of residence.

Any thoughts/pointers would be appreciated.

AGoodman
Posts:1773
Joined:Fri May 16, 2014 3:47 pm

Re: Transferring property after death with no will

Postby AGoodman » Mon May 13, 2024 1:14 pm

1. No, you will need to register - register both transfers at once so you do not need to do it twice
2. Yes - but bear in mind that
- Aunt will have a reservation of benefit in the property while she continues to live there - the 7 year period will not start until she moves out
- There is a tax free uplift for CGT on death - it is not no gain/no loss
3. PPR should apply to any gains since death provided Aunt remains in situ

Get some proper advice to ensure the distribution/gift/registration is done properly. A deed of variation may be warranted but that will depend on a number of wider circumstances and it may only be sensible for the nil rate band.

fabs35
Posts:16
Joined:Wed Aug 06, 2008 3:04 pm

Re: Transferring property after death with no will

Postby fabs35 » Mon May 13, 2024 11:41 pm

That's great - thank you so much.

someone
Posts:706
Joined:Mon Feb 13, 2017 10:09 am

Re: Transferring property after death with no will

Postby someone » Wed May 15, 2024 4:07 pm

You don't say if there are any children or grand children. If there are then it might be more complicated due to the value of the estate.

https://www.gov.uk/inherits-someone-dies-without-will


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