Probate Case Study
An example of how the probate application process can go horribly wrong when personal and financial affairs are not set up correctly.
Current Situation
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The main residential property was transferred from the parents to their adult child
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This child did not have a Will or seek formal advice as to the financial implications of doing this
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The parents continued to live in the same property
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The parents although married, were separated
Implications
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The son died intestate (without having a valid Will), so the rules of intestacy would apply to the distribution of his estate, including the parents house
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The parents did not pay market rent to their son after the transfer was made, exacerbating the IHT situation
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The parents lost the Residential Nil-Rate Band and basic IHT planning tools
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An unnecessary IHT liability arising due to implementation of this transfer without seeking proper advice
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Loss of control of an asset by the parents