making a will, leaving a house

[big-all]

I'm not sure about putting a notice in the paper, so can't comment on that point, but I know they won't foreclose whilst the executor is dealing with the estate. and most deed's are held at the Land Registry nowadays, not at the Mortgage company any longer. But at the end of the day, the OP still owns the property, not the Mortgage company; the only scenario that you're talking about, is Hire Purchase where the lender is the owner of the item until it's paid off in full.

not sure about the exact process when a mortgage is still held my dads house was paid off
the point i am trying to make is you don't carry on as is when someone dies there assets and bills all go on hold the assets go one side off the sheet and all debts on the other they have to be discharged including the funeral and care costs before the assets can be distributed as per the will
as you say they all come under the control off the executor
its 4 or 5 years since my dad died so my memory is a bit cloudy and things may have changed a bit

 

[peterchichester]

I haven't got a mortgage. Just as well, seems to make things complicated

 

[big-all]

old enough to decide for themselves how to handle their inheritance.

You haven't met my daughter!
My point is that they might prefer to collect the rent and watch the price go up for a couple of years, my money would still leave them with a mortgage and neither earn enough to pay one.

aa i assumed you had a mortgage
i assume this comment means a remortgage pay off all other commitments not covered by your other assets ???

 

[peterchichester]

No. I meant even if they used the majority of the money for a big deposit they might still not earn enough to pay off the mortgage they would need to take out.
I have no debts. The only money I have ever borrowed is for a mortgage. I thought I'd have a happy and long lived retirement but it looks like I won't. Nuisance

 

[big-all]

its actually relatively easy if you have simple affairs
my father like my self was well organized he had a folder with all bank accounts saving and isas as well as all services but unbenown to us he also kept details off all the old isas and accounts long closed but no "closed " or other indication on the paperwork ment we had to write to them just in case trippleing the workload

 

[Doggit]

Sorry to hear thing don't look good for you Peter, but having no outstanding debts make things easier for sorting out your will. Can I be a bit impertinent, and ask how long you feel you've got left, and what you're estate might get valued at. Do I assume that the kids don't live with you, as to rent it out, would make them homeless. And at what age, or how far in the future do you feel they would be more sensibly able to take advantage of their inheritance.

 

[big-all]

Sorry to hear thing don't look good for you Peter, but having no outstanding debts make things easier for sorting out your will. Can I be a bit impertinent, and ask how long you feel you've got left, and what you're estate might get valued at. Do I assume that the kids don't live with you, as to rent it out, would make them homeless. And at what age, or how far in the future do you feel they would be more sensibly able to take advantage of their inheritance.

wasnt sure if it was a medical issue or bequeathing that was causing the problems
didnt want to seem flippant or uncaring but also didnt want to pry

 

[Doggit]

I agree, but how do you sensitively help someone without asking difficult questions. I shan't be upset if Peter tells me that he'd rather not say any more.

 

[Mikefromlondon]

Best thing to do is to see a professional will writer, they can provide a best advice for your circumstances, give you a wide choice of options to minimise inheritance tax, and also best advise with regards to outstanding mortgage that can be transferred to your sons, so that they can continue to pay mortgage and own the house jointly, as now a days it is not easy for youngsters to get a mortgage on low income, but you could add their names to it as a joint mortgage even if they don't actually pay any, since you would be paying it all, and to my knowledge when a joint partner dies, the mortgage is considered paid, so your sons could own the house without inheritance. Seek professional help.

 

[peterchichester]

I don't know how long I have to live, I know it is limited. I'm going to the Brompton on Monday, hopefully to get more information. I repeat, there is no mortgage or debts or inheritance tax! Of course the children don't live here, otherwise they couldn't rent it out could they?

 

[Bosswhite]

As I understand it without a will the property goes to direct next of kin, there does not appear to be a partner in this situation so the property goes to the children after the mortgage has been paid off, ( Mortgage should be insured with a life policy)
It will depend on the current price of the property and whatever assets are left as to whether Inheritance tax is involved.
A copy of the Death Certificate of the owner should be sent to Land Registry including name of next of kin to change the name on the Land Registry, this can be done without a Solicitor and costs less than £100.

Once the property is registered 50/50 in the children's names they then can decide what they want to do with the property
but it is still advisable to seek legal advice

There are several Will writing services on the Internet, one can write out a will and have it checked as to its legality, or there are several Charities that will write out wills legally for a donation, (cutting out the legal sharks and save a considerable amount of money)

 

[EFLImpudence]

Answering the original post bearing in mind the latest information:

I need to make a will.

Right.

The major dosh is my house which will go to the two kiddies who are in their 20's.

Ok.

I was wondering if it was possible to leave them house to them in a way that they could rent it out? That might suit them better.

If you leave them the house then they can do whatever they want with it.

I'm thinking not because I would be leaving them the value of the house and not the house.

No, you will be leaving them the house.

Does that make sense?

NO.

I'm loathe to give it to them now, may be tax implications.

In what way?

Is it worth more than the inheritance tax limit?
Even if it is, if you give it to them now and survive seven years then it will not apply.
If it is, if you give it to them now and do not survive seven years the tax situation will be the same as if you had not given it to them now.
If it is not, then it does not matter. There is no point giving it to them now.

 

[Himaginn]

I believe there is a reducing tax system. I.e if you give it to them now and survive for 6 years, they will only have to pay 1/7 of the tax that would have been due.

Sorry, just realised, you'd already said: no inheritance tax.

 

[big-all]

as an aside
if the boys get any benefits or get housing help a part share in a house will effect them

 

[JohnD]

if you "give" it to them and continue to live in it, it will be a gift with reservation and inheritance tax will still apply.