Forum Topic

Probate question

My mother has recently died and left myself and my brother with equal shares of the house. Low value no inheritance tax payable. My brother is executor of will and would like to live in the house and buy out my share. I have no problem with this   I has anyone experienced this when going through probate.  Do we need deed of variation on will or  how do we transfer property to his name.?Thanks

Alina Dansord ● 2024d9 Comments

Get Probate sorted out first. It shouldn’t take long and can all be done on line. You should then get a solicitor to oversee the sale of your share to your brother.

Susan Jennifer Thackray ● 2024d

My husband was left my mother in law’s property and his brother the liquidated assets after bequests and taxes.  Mother in law was most concerned that the sons should receive an equal share of her estate so the brothers agreed that they would divide the legacy 50/50 once probate was granted and all taxes and outgoings paid.The valuation of the apartment and the contents turned out to be marginally less than the money/investment assets.  Once the legals were over the property was put in my husband’s name, the brothers settled the financial difference.All very amicable and absolutely no unpleasantness.I suggest the two of you get independent valuations on the property and contents.  If there are any items of value or that either of you would particularly like try to agree who should keep what.  Toss a coin on who has first choice and then go turn by turn on each item.  It is vital that an atmosphere of generosity is maintained.Good luck and may it all go well.

Elizabeth Ross ● 2024d

Sorry Alina, don’t know why I assumed it was 2 brothers.

Elizabeth Ross ● 2024d

Although there is no inheritance tax payable, you will still need to report the value of the estate to HMRC before you can apply for probate.When you mention a deed of variation, I assume that you are thinking that you do this in order to transfer your half to your brother.  You definitely should NOT do this.  A deed of vatiation does exactly what it says - it varies the will.  The effect is as if the will had been written like that in the first place - so in this case, as if the house had been left in its entirety to your brother - in which case, you would not have a share for him to buy out - in effect you have cut yourself out of the will (or yu could look at it that you have gifted your half rather than being bought out).Susan is correct - once probate has been obtained, then you sell your half of the house to your brother.  The process is straightforward (essentially you would just fill in a Land Registry transfer form TR1) so you may not feel you need a solicitor for that, although of course you may be more comfortable having one.

Andrzej Kowalski ● 2024d

I am not a lawyer but .... there will be transaction costs involved in selling your share of the property to your brother. A deed of variation would avoid this and be simpler all round. It all depends on whether or not you trust your brother to keep his end of the bargain. Better call Saul.

Cllr Sam Hearn ● 2024d

Sam, I have to say it's not a question of trust, it should be handled like any business transaction. I have handled the sale of many probate sales and seen quite a few families fall out because matters were not clear from the start.That doesn't mean it can't be friendly but as Regan said " trust but verify "I am not sure but don't deeds of variation have an upper financial limit?

Adrian Irving ● 2024d

I've done two deeds of variation on two wills for which I was executor and never heard about there being any upper limit financially.As the estate is below the IT threshold, I can't see it being a problem.There is a *time* limit: two years.

Susan Kelly ● 2024d

I agree with Adrian.  In addition, although there is no inheritance tax payable now, a deed of variation with a payment on the side to "fulfil his side of the bargain" leads to a potential inheritance tax problem later.  In these circumstances, since the will has been varied, the payment from brother to sister would count as a gift - not as an inheritance from the parent.  As such, if the brother were to die within seven years, that gift would count as part of his estate.  If that meant that the brother's estate were to be large enough to qualify for inheritance tax, then inheritance tax would be payable on that gift.  I suggest that is not a desired outcome!

Andrzej Kowalski ● 2024d

Thank you all. Most helpful.

Alina Dansord ● 2023d