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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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My mother died last week.17 years ago she was advised to sign

Customer Question

My mother died last week.17 years ago she was advised to sign her house over to her four children. Will the value of the house be included in her estate.She lived in the house until she went into hospital and care home ,in November.
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
Hello,

If your mother lived in the house rent free, it would be deemed to be part of her estate for inheritance tax purposes and the value of the house would be included in her estate under what is known as the "reservation of interest" rule.

May I help further?
Customer: replied 3 years ago.

Thankyou for that.Mum lived in the house rent free but paid for a new kitchen,redecoration and further upkeep of house in lieu of rent.


Would that make any difference?

Expert:  UKSolicitorJA replied 3 years ago.
I am afraid not as the taxman could argue that these expenses were for her benefit to keep the house modern.

If there was a formal tenancy agreement and she paid market rent, then that would have been a different matter. Also there is the argument that tenants do not pay for new kitchens etc.

Sorry. I can only advise you truthfully.

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Customer: replied 3 years ago.

Thankyou for your help on theis matter.

Expert:  UKSolicitorJA replied 3 years ago.
welcome