Inheritance of a private property
There are a few things you can do when inheriting a house or other private accommodations. You can sell it, rent it out or live in it. You also need to find out if you have to pay tax on it. If you only inherited a part of it, you will have to make decisions with the other owner(s)
Tax and inherited property
The administrator or executor will have to sort out any financial affairs related to the property. If you decide to rent it out, you will have to pay tax on any rental income that you receive on it. If you want to sell it, you will need to pay tax on any profit that you get as a result of the sale. Finally, if you decide to keep the property, you will have to decide which property you want to nominate as your ‘primary home’ as you will be expected to pay Capital Gains Tax on your main home only.
If someone is living in the inherited property
If the property has a tenant, you can agree with them to continue living in the property. In this situation you will become the landlord and take on any responsibilities associated with that. Get more advice from a solicitor or lawyer if you find yourself in this situation.
Putting the property in your name
Once you inherit a property, you can register your ownership at the Land Registry. This is not compulsory unless its sold or mortgaged, but it will save you a lot of trouble in the future if you need to prove yourself as the owner.
Mortgage payments
Keep in mind that if the property has a mortgage, you will have to pay it off even if you don’t live there. Otherwise, it will be repossessed and sold to pay off the mortgage.
Property trusts
A ‘trust’ is a way to hold and manage money or property for those who can’t do it themselves. When you receive a property that’s held in a trust, you are a ‘beneficiary’. The ‘trustee’ is the legal owner of the property who has to deal with all the legal ramifications as bound by the will.
Similar Posts:
- House Contents Valuations | Leaving Property In The Will
- Probate Valuation Of Chattels: Dealing With An Insolvent Estate
- Buying Abroad – The Tax, Financial and Legal Considerations
- Probate Valuation Of Chattels: Gift With Reservation Of Benefit (GROB)
- UK Probate Valuation: Capital Gains and Inheritance Tax