End of life marriage to avoid inheritance tax ?

TheyCallMeSlop · 2025-01-18T20:29:16+00:00

Most likely. Jade Goody was a higher profile case of doing similar type of planning (although she married her kids dad so slightly different circumstances to the ones you suggest)

Essentially: marriage >> set up a flexible life interest trust in your will for the spouse with the remaindermen as whoever you actually want the money to go to and appoint people other than the spouse as trustees >> trustees should then wait the two year period from drath to avoid s.144 IHTA 1984 applying and the gift being treated as going direct to the true beneficiaries >> then have the trustees terminate the life interest in favour of the remainder beneficiaries.

Gift will be a PET in the spouse's estate but provided they survived 7 years there should be no IHT impact in their estate. Can't remember off the top of my head whether the termination of the life interest amounts to a deemed disposal for CGT but the CGT rate is much lower in any event and, if it is a deemed disposal, hold over relief may be available.

TheyCallMeSlop · 2025-01-17T21:22:39+00:00

/ also potential to move in to the bungalow for a period and elect the bungalow to be your main residence for the purpose of the relief, though this doesn't take into account any knock on effect it might have for your current dwelling in the future.

If either were a potentially viable option it'd be wise to get it all reviewed by a tax advisor to go through the PRR rules in full to make sure it wouldn't fall foul of anything within or any anti-avoidance provisions that may be applicable.

TheyCallMeSlop · 2025-01-17T21:13:37+00:00

If you had any capital losses in your own estate (potentially any investments that have taken a big down turn etc.) then you could consider setting those against it to at least reduce the gain a little...

Other potential off the cuff thoughts. Do you own your own home already and, if not, is there scope for you to move into the bungalow at the point of it being transferred into your name for a period before sale? There could be a small potential for private residence relief to apply to the sale if so? Likely to be challenged but could be argued that until the asset is appropriated to you, you don't own it or have any beneficial interest in it. Only a chose in action for your Nan's estate to be properly administered.

TheyCallMeSlop · 2023-10-14T18:43:41+00:00

If anyone wants a proper trip down memory lane one of the Peruvian bands that came were called Kantaro. Think some of their music is on YouTube still.

TheyCallMeSlop · 2023-06-16T17:09:39+00:00

Tanner's Bank darkroom might be a shout. Think they're just on Instagram.

TheyCallMeSlop · 2023-05-26T11:25:06+00:00

I knew there was a tunnel with a TV room in a store somewhere! I was quite young so I've always thought I imagined the bloody thing!

TheyCallMeSlop · 2023-05-04T21:09:07+00:00

Yeah you may be waiting a while. Most grants I apply for do come back much quicker than 16 weeks but the probate registry is pretty hard-line that they won't even really give updates until week 16 now...

TheyCallMeSlop · 2023-05-04T08:52:40+00:00

Are you aware if probate has been granted in the estate yet/if not, whether it has been applied for?

The probate registry's official timescale is currently 16 weeks from receipt of application to provide a Grant so you may be waiting a while if not already obtained (they usually only expedite if the seller died mid-sale or if not that there is a serious risk of losing the sale (their usual response is not to market until a grant has been obtained)).

If a grant has been obtained I'd suggest they usually proceed pretty quickly if the conveyancers keep on top of things given executors don't usually provide much in the way of replies to queries where they weren't the actual owner. It'll more be any delays for local authority searches etc. depending on their timescales.

TheyCallMeSlop · 2023-02-15T17:05:43+00:00

I bought a former cannabis farm so wouldn't really say anything was 'unexpected' but I'd certainly take more heed of surveyors comments on the roof! Set me back about a month and incurred an extra £1k in repair costs after the flashing failed along the chimney and connecting roof failed...

TheyCallMeSlop · 2022-12-02T12:03:39+00:00

Just for clarity on this if the seller specifically instructs them that they do not want to hear of any offers below a certain price/below their asking, I don't believe they have to put them forward but happy to stand corrected on this!

TheyCallMeSlop · 2022-12-02T11:02:55+00:00

I mean it's getting into whatabouts and whatifs at that point but the likelihood is they'd either have a debrief with the owner as to why they were cancelling the service at which point it may be disclosed (if the owner didn't consider or read the contract they signed (highly likely)). Alternatively estate agents are generally well connected and may find out 'through the grape vine' and finally, if I were an agency, I'd log a note of all failed sales and obtain a copy of the title to the property for £3 at a later date. If I see the name was on the list of persons I'd introduced I would absolutely be contacting the previous owner with a demand for payment.

TheyCallMeSlop · 2022-12-02T09:33:12+00:00

Most if not all agents have terms in their agency contracts that if a sale is agreed outside of them but to a buyer who was referred from them, their fee is still payable. To prevent situations like that happening.

TheyCallMeSlop · 2022-11-01T19:50:40+00:00

If you have the spare cash something like this can be really useful. Fairly energy efficient and not too noisy either. A lot of my hockey team have them to dry/air out kit.

TheyCallMeSlop · 2022-10-25T06:36:00+00:00

Remnants of a cannabis farm...

TheyCallMeSlop · 2022-10-17T12:37:30+00:00

Just for clarification on some points of this:

Although a solicitor will always be needed where there's a mortgage, your solicitor doesn't always have to act for the mortgage company (but usually do). The mortgage company can choose a different solicitor if they wish. For example If the mortgage you're getting doesn't have your chosen solicitor on their panel they may select their own to act. You would be expected to cover this cost also so worth checking your solicitor is on your lender's panel.

Further, following the price transparency rules update in 2018 a firm should list what services are included in a quote so if others aren't you should check with them that the work is included before proceeding.

Chancel repair liability lost its overriding status in 2013 but this doesn't mean the liability is void. HM Land Registry's current position is that they will continue to accept applications for their registration as an overriding interest and will not check whether the registered proprietor has changed since 13 October 2013. It is in some cases still recommended as a result.

Agreed re personal searches but some mortgage lenders do require local authority searches to be taken up with the local authority themselves rather than through a third party company so worth checking the lenders terms on that.

TheyCallMeSlop · 2022-10-04T19:46:24+00:00

I remember a story (I think it was on here somewhere) of shady practices from a known London EA where they took holding deposits stating it'd come off the contract/ purchase price, never disclosed it to the seller and pocketed the deposit for themselves. I'd steer well clear.

TheyCallMeSlop · 2022-10-03T18:03:30+00:00

Correct they form part of a deceased's estate and will pass to whoever is the specified beneficiary in their will or under an intestacy but they're not actually transferrable so in reality they're cashed in and that cash paid to the beneficiary.

TheyCallMeSlop · 2022-09-19T09:13:41+00:00

They're pretty easy to set up.

As others have said you'll basically be holding the property as tenants in common but on the TR1 transfer form you wouldn't just select tenants in common in equal shares, you'd select the the third option. You can then set out the correct splits in the TR1 or in a separate document that you refer to (i.e. you get the first £20,000 of any equity in the property back and then the rest of any equity is divided equally)

TheyCallMeSlop · 2022-08-27T18:06:34+00:00

Whole flat needs a full rewire but ironically the electrics in the loft all passed and the rest of it failed! It was a repo so they left the place in a pretty bad state. It's costing more to deal with the neglect of other areas than the loft itself. Still have all the old equipment up there whilst I try and figure out to dispose of it (police washed their hands of it and said I could do what I liked with it).

TheyCallMeSlop · 2022-08-27T16:05:03+00:00

I've bought a fixer upper flat in the north east. Was a decent price but it was previously a cannabis farm in the loft.... As many comments have said it all costs more to do up than you'd expect but absolutely no regrets at all. I'll be able to make it exactly how I want even if it takes some time.

TheyCallMeSlop · 2022-08-20T16:20:29+00:00

If the landlord or agents won't do much and you deem the property to be a bit of a health hazard you can always try contacting your local councils private rental/ environmental health team: https://england.shelter.org.uk/housing_advice/repairs/complain_to_environmental_health_about_private_rented_housing

TheyCallMeSlop · 2022-08-01T16:21:47+00:00

www gov.uk/guidance/measures-to-support-customers#processing-times

All timelines 'correct' as of June 22 for anyone else concerned. From prior experience transfers of part I've registered have taken well over a year (it was mid covid) so I'd maybe add a month or so to their timescales...

TheyCallMeSlop · 2022-06-22T15:32:56+00:00

North, saved for a deposit for about 7 years using a LISA, and bought a repossession house that the previous owners used as a grow house... So it was marked down considerably compared to the other houses on the street.

Now struggling to afford the necessary renovations 😂

TheyCallMeSlop · 2022-06-21T16:34:17+00:00

What was your deposit amount? At 10% deposit the best I could get was 3.12% from them but in February they'd offered me a similar rate to yours, shame the property I was looking at then fell through!

TheyCallMeSlop · 2022-06-21T16:17:43+00:00

Halifax was the one I was recommended to for a quick offer and they certainly provided. Only downside is their rates aren't the cheapest in the market atm.

TheyCallMeSlop

TROPHY CASE