Inheriting a House After Death

18/07/2019
When a property owner dies, matters such as inheriting a house after death and various other complicated issues come to the fore and you need sensitive advice to guide you through this challenging period, which is most often a time of distraught emotions and grieving relatives.

The deceased may or may not have written a last will and testament (click to find out more), this itself may be contested if there is a belief that it is not valid) and if there isn't a valid will, you have to go to the court for administration for a grant of administration rather than obtain a grant of probate.

Incidentally, full probate can only proceed once HMRC has recognised the validity of any relevant intentions of the deceased and this can only go ahead once any death duties which are calculated have been paid.

This article therefore briefly looks at what to do when a property owner dies, including how a property is disposed of. 



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    1

    Probate is in place

Usually, the deceased’s will specifies a named person to deal with the estate (or the deceased's next of kin if there is no will). They are responsible for the legal affairs and will often obtain 'probate' (where there is a will).

With probate (click to find out much more on this subject), affairs can be - relatively speaking - generally made to be as neat as possible. A special RICS valuation called a RICS Probate Valuation is taken: note that the value of the estate is fixed at the date this valuation is carried out.

Once HMRC is satisfied that it has received a full account of all of the deceased assets and has either billed the executor (personal representative of the deceased) or determined that there is no death tax to pay, then it releases a Grant of Probate which then enables the executor to transfer or sell the property according to the deceased wishes (normally according to the latter's will).

Worried about people you have to contact? Here's some great time-saving tips, links and information to know

People, whether they're executors with important roles or simply family members in mourning, quite rightly grasp the complexities of tidying up some of affairs of a recently-deceased person.

Click on Guild to Probate (from Money Saving Expert) - most importantly, the information on this page gives you links to 'one-stop points' for reporting a death to all Government organisations in one go and also for reporting it to banks, building societies and other financial firms at the same time.


If the property is registered and the person who died was the sole owner, then the personal representative will often either Assent (form AS1) the property to the person(s) who inherits it (beneficiaries) or Transfer (form TR1) the property to someone else.

If the deceased was a joint owner and the partner is still alive, you register the death with HM Land Registry using form DJP, along with an official copy of the death certificate.

Probate is not required to deal with the property but may be needed if the deceased’s estate warrants it.

Much depends on what the deceased owned and what the beneficiaries intend to do with the property. Whatever is decided though does not have to be rushed and is usually dealt with several weeks after the death and the reading of the will.

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    2

    No Probate? Matters must go to Administration

Hopefully a deceased person has 'put their affairs in order' but this can never be assumed. If there isn't an identifiable legal will, complete with at least one executor and one beneficiary (and the will has been appropriately witnessed), then matters must be referred to the Court of Administration (click to find out more), which aims to carry out and complete the many functions which a valid will would have covered.

Just a few of the matters include valuation of an estate including the deduction of any necessary debts, finding relatives who might be in line to be beneficiaries and even settling family disputes.

If things have to go to Administration - and ultimately the executor/s get a Grant of Administration rather than a Grant of Probate - things inevitably take longer, are more expensive and can be much tougher emotionally.

When there's a lack of identifiable or legal will, we'd always recommend that you hire a Probate Specialist to wind up matters in as efficient and cost-conscious manner as possible.

That said, we encourage all interested parties to read further to find out more about the subject in general - there are many things you can achieve on your own and some types of the detective work involved you can do just as quickly yourself and much more cheaply if you have the time to do so.

    3

    Brief Immediate Checklist

  • when someone dies, there's usually no rush to sort out what happens with their property;
  • if the property is registered in joint names, and the other person wants to remain there, you just need to notify HM Land Registry of the death;
  • if the property is registered to a sole owner, you need to get probate before the property can be sold;
  • if the property isn’t registered, a transfer of ownership will trigger the need to register it for the first time; and
  • if you're unsure about any of this, get legal advice, as sorting out the affairs of the deceased can be quite tricky.

    4

    How to deal with property when someone has died

Essentially we provide links here to the relevant HM Government questionnaire/s on their website.

The first page is headed 'Update property records when someone has died', an apt description because if the knowledge you have is limited, you'll need to know what forms to complete, what documents you'll need to send and how much it all costs.

You are first directed to search for property information from HM Land Registry (click to access this Government web page) where you can find out about a property in England or Wales, even if you don’t own it. You can search by address to find the owner, how far its general boundaries extend and whether it is at risk of flooding. You can also find out whether it is in fact registered with the Land Registry and whether it's owned jointly or by one person. Bear in mind that there are different rules for Scotland and Northern Ireland.

You are advised to have an email address ready and a debit or credit card to pay for any services you might have to avail yourself of - these are detailed on the page itself. You're reminded that you'll need an official copy of the register if you need to prove property ownership.

For the questionnaire proper, you will have to answer a sequence of 4 questions (at press time there were only four) and this should help you plan what to do next.




Need a Probate Valuation or a Probate Legal Specialist?

In a sensitive time, we can provide these services in a thoughtful, discreet manner and our experience counts.

* Discreet – Timely – Experienced


Related News Articles

 
Grant of Letters of Administration
03/10/2017
Grant of Probate
13/11/2017
House valuation for probate
08/07/2018
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