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Tax On The Sale Of A House.
17 Answers
With the passing of my sister last year, it means my nephew will have to sell her house. There is no will. Before she died, she told him that when sold, the money should be split 3 ways between my nephew, her step son and myself. Would this be subject to inheritance tax or some other kind of tax?
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As long as her entire Estate is below the figures quoted by VHG (including any Life Insurance to be paid out) there is no inheritance tax to pay.
There is no Will (and assuming no husband) her natural children are her only legal heirs. If your nephew is the only child it will all pass to him and it will be his decision whether to honour her wishes. Unless she formally adopted the stepson he has no legal claim but could challenge if he was financially dependent on her, neither do you.
If he does pass on any money it will be classed as a Potentially Exempt Gift and there will be no tax to pay as long as he lives 7 years from the date of the gift.
I am assuming his disabilities are physical and he has the mental capacity to make the decisions.
Whoever is going to deal with the Estate will need to apply to the Probate Office for Letters of Administration before the house can be sold or put into his name.
There is no Will (and assuming no husband) her natural children are her only legal heirs. If your nephew is the only child it will all pass to him and it will be his decision whether to honour her wishes. Unless she formally adopted the stepson he has no legal claim but could challenge if he was financially dependent on her, neither do you.
If he does pass on any money it will be classed as a Potentially Exempt Gift and there will be no tax to pay as long as he lives 7 years from the date of the gift.
I am assuming his disabilities are physical and he has the mental capacity to make the decisions.
Whoever is going to deal with the Estate will need to apply to the Probate Office for Letters of Administration before the house can be sold or put into his name.
As there is no Will, what she told your nepwhew is unfortunately irrelevant - the estate will have to be distributed according to the rules of intestacy
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10 Clarion
I am sorry for your loss
on the facts you have provided then the nephew under the rules of intestacy will inherit the lot and it is up to him to distribute it as your sister wanted. It seems likely that he will. ( I think it is a semi-secret trust but that is irrelevant as he clearly understand what needs doing )
tax depends on whether to estate is less than £325k ( or 650k if the husbands nil tax band was not used or fully used )
it is likely that it is under
your nephew will almost certainly have to apply for letters of administration if there is a house sale involved
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dont goto a lawyer they will want £200 / h for stuff you can do yourself
I am sorry for your loss
on the facts you have provided then the nephew under the rules of intestacy will inherit the lot and it is up to him to distribute it as your sister wanted. It seems likely that he will. ( I think it is a semi-secret trust but that is irrelevant as he clearly understand what needs doing )
tax depends on whether to estate is less than £325k ( or 650k if the husbands nil tax band was not used or fully used )
it is likely that it is under
your nephew will almost certainly have to apply for letters of administration if there is a house sale involved
http://
dont goto a lawyer they will want £200 / h for stuff you can do yourself
I am going to be pedantic, because that is my role in life.
Everyone is correct on the tax position. Everyone is correct that the nephew cops the lot due to him being only child (assuming no husband).
Stepson does NOT have to show he was dependent in order to claim. A person who was treated as a child of the marriage to which the deceased was a party (ie a step child) has a potential claim under the Inheritance (Provision for Family and Dependants) Act 1975. But it is only potential and would need court action. One day, I promise I shall write an article on this for Ed to publish because it does get trotted out time and time again with slight inaccuracies.
If nephew decided to honour deceased's wishes, do a Deed of Variation which is then not treated as a potentially exempt transfer.
I'd advise nephew to extract Grant of Letters of Administration and
Everyone is correct on the tax position. Everyone is correct that the nephew cops the lot due to him being only child (assuming no husband).
Stepson does NOT have to show he was dependent in order to claim. A person who was treated as a child of the marriage to which the deceased was a party (ie a step child) has a potential claim under the Inheritance (Provision for Family and Dependants) Act 1975. But it is only potential and would need court action. One day, I promise I shall write an article on this for Ed to publish because it does get trotted out time and time again with slight inaccuracies.
If nephew decided to honour deceased's wishes, do a Deed of Variation which is then not treated as a potentially exempt transfer.
I'd advise nephew to extract Grant of Letters of Administration and
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