kz
Member
Registered: 9th Aug 02
Location: Southend, Essex Drives: Mini Cooper S
User status: Offline
|
Hi guys. Unfortunately my dear gran passed away a few days ago, I hate having to talk about money at a time like this, but alas, it must be sorted.
She had a nice house, we're thinking it's worth around £325-375k. Firstly what's the amount that they rip you off on inheritance tax? My uncle is thinking of moving from his house to that house, then selling his as another option, his house I would say is worth slightly more.
Now my uncle's doing alright for himself and doesn't really need the money too much. However my mum, who I live at home with does need the money. My uncle's original idea was to rent out my gran's house whilst any decision was in the process of being made, which would give them both around £500 a month.
My mum has said she understands this but really does need a big intake of money as there's things that desperately need doing at our house. She said she'd rather get either property sold of asap. My uncle's saying that right now is not the time to sell and we could easily loose around £40k of what the house is worth if it was sold soon.
Do you think he's right? Are we better off waiting until the market's better? Maybe a year wouldn't be too long, but any longer and my mum's really gonna struggle. I'm just not sure what to advice as I don't know anything about property myself...
My personal idea though was to maybe put both the houses up for sale (or at least get them valued) to see what prices we getting offered and if there's any interest. As regards to my uncle moving to my grans house, he wants to, but his wife doesn't! Awkward! But he usually gets the final word lol.
Any help appreciated 
|
_Allan_
Member
Registered: 24th Mar 04
User status: Offline
|
I wouldn't sell it now, he's right. It's picking up again slowly but I'd leave it 12-18 months at least.
How is the £500 extra month not going to help?. That is a fair bit of extra income. If your mum needs a substantial amount now then could her brother not borrow her any if he's a bit better off?. Alternatively could your mum not get a loan/remortgage and use the £500 a month to pay it off. Risky if it's being rented but could get a good loan for that kind of repayment.
[Edited on 27-06-2009 by _Allan_]
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
He's right in the sense that its a terrible time to sell, however its not going to be a quick fix & it could take 5 years - more maybe (who knows!) until the market recovers.
I think its always best to get on with stuff like this, get it over & done with & not drag feet over what you could have got. Just be happy to have been left something & shes not left it to the local cat home 
Sorry to hear about your gran btw. 
[Edited on 27-06-2009 by Colin]
|
_Allan_
Member
Registered: 24th Mar 04
User status: Offline
|
Ooops sorry also about your nan
Rough example to tax;
Net value of Mr Jones's estate = £287,240
Inheritance Tax is payable because the net value of the estate is above the threshold of £275,000. Tax is charged at 40%.
•Net value of assets = £287,240
•less threshold = £275,000
•Total liable to inheritance tax = £12,240
Inheritance Tax (£12,240x40%) = £4,896
Seems to be ceiling limit of £275,000 then charged at 40% over that. Might have misinterpreted but need to get a solicitor involved anyway.
http://www.hmrc.gov.uk/cto/customerguide/page2.htm#5
[Edited on 27-06-2009 by _Allan_]
|
liamC
Member
Registered: 28th Feb 04
User status: Offline
|
Easier said than done, but whatever you do, try and make sure the siblings of your gran squabble over it.
My Aunty and her brothers/sisters side of the family have squabbled like kids over who should get the brass over selling their dads home and now none of them speak to each other.
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
quote:
Originally posted by liamC
Easier said than done, but whatever you do, try and make sure the siblings of your gran squabble over it.
My Aunty and her brothers/sisters side of the family have squabbled like kids over who should get the brass over selling their dads home and now none of them speak to each other.
Same with Jades Grans house, they all fell out & one greedy uncle ended up taking the lot!! Now they dont speak!!
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
Tell your mum & uncle to just be happy they've been left something & not get hung up on the figures of your grans estate. After all she wouldnt have wanted them fighting over it!!
Pest practice is just to sell it, split the money & be thankfull. 
|
kz
Member
Registered: 9th Aug 02
Location: Southend, Essex Drives: Mini Cooper S
User status: Offline
|
Cheers guys. Yeah my uncle offered my mum a loan to help her out, I said I could help out too. I guess after the funeral we will sit down and discuss it properly. Thanks Allan for the example of tax, makes a bit more sense now, I thought you got taxed on the whole amount which would of been a pisstake!
|
