Married woman dies owning marital home

Married woman dies owning marital home

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Marital home in sole name (the wife's) throughout since date of purchase. She dies (intestate, not that it's of much relevance to this question)

Clearly what she has left is not a vacant property but one that has a "sitting tenant" , namely her surviving husband. 

How is his right of continued occupation to be valued for IHT purposes, so that an appropriate deduction can be made from the property's vacant value in the IHT filings?

I've trawled t'internet without any success on this point.

All comments very gratefully received.

Replies (5)

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By gbuckell
28th Jul 2014 12:19

Relevance?

If the house is being left to the husband, the value for IHT purposes is irrelevant.

If the widower is continuing to occupy the property as his PPR, the probate value for CGT purposes may also be irrelevant.

Having said that surely any valuer would take that factor into account. Does he have rights of continued occupancy anyway?

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By Kirkers
28th Jul 2014 12:27

I was under the impression that rules of intestacy mean that any money/property/possessions up to the value of £250,000 fall automatically to any surviving husband or wife.

Any remainder is then passed onto any children (including adopted but not step-children).

 

I would have thought that IHT isn't an issue but for CGT you'd use probate value.

If the property is worth more than 250k and there are children I'm not sure how that would work, but thought I'd throw my two pence in!

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By St Bruno
28th Jul 2014 16:47

Kirkers,

You're right. The first £250,000 goes to the surviving spouse who also gets a life interest in, in this case, one third of the remainder.

IHT seems to be an issue as, other than the value of the life interest, £75,000 of nil-rate band is wasted.

My question is how to value the house for IHT on the wife's death.

gbuckell,

Having lived in the house as husband and wife for something like 40 years, he has a beneficial interest in it. That must surely "taint" the vacant value. Your suggestion to get a competent valuer on the case is a good one.

 

Many thanks to both.

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By mrme89
28th Jul 2014 16:55

Ignore

.

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By gbuckell
28th Jul 2014 17:56

Wasted nil rate band

With the transferable nil rate band, there is no longer a risk of wasted nil rate band. The more that goes to the husband, the more nil rate band he will have on his death.

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