It is not always that when someone dies their house is only theirs alone and not everything which has been registered by their name is out theirs. This can be a huge problem for both the executors and beneficiaries.
Inheritance Tax Treatment
HMRC has several rules which are related to the property that is jointly owned and also trust property that has been designed to ensure that Inheritance Tax is payable on the total value of the property which the deceased had enjoyed immediately prior to their death. It is important to understand that anything included in the estate for the purpose of inheritance is not always the same for including them for the purpose of inheritance tax purposes.
Jointly Owned Property
It is a very common situation when an asset has been owned by more than one person. For instance, when both a husband and wife contribute to buy a house together, they will be asked whether they want to own the property as ‘tenants in common’ or ‘joint tenants’. This record will be sent to the Land Registry office as a proof of what is you have declared. There can be a maximum of 4 owners of land but there is no limit on the number of joint owners
A joint tenancy is when two or more people own the same thing together. Both the person has entitled the thing as their own because they are the owners of the entire thing. They are not legally allowed to mortgage the asset without the other’s consent and when one of the owners dies, the other individual gets the whole asset because he or she is already the full owner. In simple words, two owners want to use and act upon the same thing.
Tenants in Common
When two or more people own shares in a particular thing it is known as Tenancy in Common. The shares of both the person can be equal or even different. And each of them is eligible to use their part of their shares on their own. One can mortgage or sell the shares they have easily. Unlike joint tenants, both are independent about transportation and all.
Joint ownership can make way for the development of trust and they can now own the property or trust when they are the beneficiaries all by themselves and other people. They can also turn to become legal beneficial owners even though it is not advisable for trust property.
So here are the different things can be included in an estate. Make sure that you consult with a lawyer from our agency to get the right knowledge and advice on different cases or topics relating to estates.
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