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Helen Hill
Helen Hill, Lawyer
Category: Law
Satisfied Customers: 534
Experience:  LLB Law, Licensed Conveyancer and Probate Practitioner, Fellow of CILEx, Trust and Estates Practitioner (STEP)
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I need to pay inheritance tax on a property put in trust in

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I need to pay inheritance tax on a property put in trust in 1985, and the person died in 2017 and property sold. how do I start
JA: When was the property or asset sold?
Customer: May 2017
JA: Anything else you want the Accountant to know before I connect you?
Customer: No just checking the website I see I have to apply for a form IHT122 to get a tax ref. no do I fill in part 1/2/3

I am one of the experts on Just Answer and pleased to be able to help you with youur question.

Were you a trustee?

Customer: replied 8 months ago.
No my dad just left the property in trust for me, but my Mum had the right to live in it until she died in 2017
Customer: replied 8 months ago.
ok, To get a tax inheritance number do I fill in IHT122 1/2 or 3

This is a matter for the Trustees, not you. I will opt out.

Thank you for your question, was the trust contained within the your late Farher’s Will? If so it is likely that your mum was appointed as the trustee and maybe you were appointed alongside her?
It really depends on the type of trust as to what the tax consequence now is. For example, a life interest trust with reversionary beneficiary terminates automaticallu on the death of the life tenant and the property is taxed as part of the life tenants estate. A discretionary trust on the other hand will need to be registered with HMRC and a tax return completed so that any tax due can be calculated.
Do you have more details about the trust?
Customer: replied 8 months ago.
No live call requested
Customer: replied 8 months ago.
The trust was contained in Dads Will the trustees were the solicitor not myself . Mum had the right to live in the house until her death according to the will or if she moved had the right to the Funds from sale too purchase next property. I thought there was an individual trust set up but can not confirm that

Did the terms of the trust confirm that the property passes directly to you after her death? If so, the only tax payable would be if your mother’s estate had an IHT liability on her death? This would need to be declared by her executors on IHT400 as part of the application for probate of her estate.

Because she had a life interest in the property the value forms part of her taxable estate. The good news being that no CGT is payable.

Customer: replied 8 months ago.
Sorry Mum left nothing apart from 900 pounds no other items so it never went to probate. Yes will confirmed after her death property was direct for me

Is the property still held in her name? What was the property value on her death?

Customer: replied 8 months ago.
She died January 2017 January , I sold property in August £455,000 the solicitor dealing said he would help me when tax office contacted me ,which they haven’t , solicitor died unfortunately last year Dad died 16 years ago will done prior to 2000
The firm should still have the records or you can contact the SRA to see who has taken over the solicitors files. Probate must have been obtained to sell the house so an IHT return must have been completed. You will need that tax reference in order to pay any IHT however it may be that there are sufficient IHT allowances available which means there is no tax to pay.
Customer: replied 8 months ago.
Thank you

Please do come back to me if I can assist further. I’d be most grateful if you could provide a star rating in the meantime as this is how I’m recognised for the assistance I give.

Helen Hill, Lawyer
Category: Law
Satisfied Customers: 534
Experience: LLB Law, Licensed Conveyancer and Probate Practitioner, Fellow of CILEx, Trust and Estates Practitioner (STEP)
Helen Hill and other Law Specialists are ready to help you
Customer: replied 8 months ago.
Will do