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Sam
Sam, Accountant
Category: Tax
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My partner died in feb 2014. In his will he left the house

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My partner died in feb 2014. In his will he left the house between me and his children. The will said that i have right to stay there for 2 years. `this is treated as a Possession in trust and when the 2 years is up I will 'gift" the shares to the beneficiaries.
The solicitor is asking if we want a variation of the will to change this due to my tax implicaions. There is likely to be a significant differnce between the probate valuation of the house and the market value (it has an Ag and Equestrian tie and the surveyor doing probate took this into account, estate agents who valued 'market value' at his death said that woud not be a factor and valued it higher 450K vs ? 650K) no IHT was due.
What are the tax implications and should I get the will varied so its not my possession in trust ?
I also have a share in another property of about 200K - 300K approx
I knw its complex - when it was firt raised I thught the worry was the IHT that would be due if I died within 7 years of the 'gifts' being made so I got life insurance to cver this but I thnk its more that I would be liable for the all the tax BEFORE it then gets distributed.
If you can give any advice I would be graeful. Its been a difficult 2 years and I am just waking up to the fact that Ive got to get it sorted in time for Feb when the 2 years is up.
Thank you JAckie Lund
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi Jackie I am Sam and I am one of the UK tax experts here on Just Answer. I would assume that the house in question is now in both you and your late spouses children - and was transferred after probate had been granted - so I can see no sense in making a variation to the will which will prove costly - and only serve to potentially revise the Inheritance tax position for the children s share, as you personally do not suffer Inheritance tax (it arises on the estate for all assets other then those gifted to you) And then you will not have capital gains when you transfer/gift your share to the children as any gain will be fully covered by private residence relief as this has been your home. Unless there is more to this it would seem the only one who really benefits here in the solicitor for the charges for the work! Then the share in the other property- was this gifted before your sposes death? OR as per the will? Thanks Sam