What happens to a Halstead property that is subject to shared ownership when you die. Therefore, when it comes to a Halstead property’s shared ownership when one party dies, Laura Richardson explains all in her latest article for Andrew Douglas Wills and Legal Services.

How a Halstead property is passed on after you die depends on how the property shares are legally owned.

Joint Tenant Ownership

If your Halstead property is owned between you and the other owner(s) as “joint tenants”, this means that when you die, your share of the property is automatically transferred to the remaining owner(s), as named within the legal deeds to the property.

Tenants in Common

If the Halstead property is owned between you as “tenants in common”, then your share of the property is passed on according to the directions in your Will to your chosen beneficiary or beneficiaries, or according to the laws of Intestacy if you did not make a Will. The remaining owners are unaffected by your death in terms of their shares of the property.

Inheritance Tax Calculation

In either case, after you die the value of your share of the property must be included in the overall total value of your Estate for the purpose of calculating whether any Inheritance Tax would be payable. It is the responsibility of the Executor of the Estate to ensure that the valuation of any Halstead property is accurate. Therefore, it is best practice for them to consult with a professional such as an Estate Agent in order to ensure that the valuation is representative of the market value of the property at the time of death.

Who pays the Inheritance Tax?

Inheritance Tax is usually paid for out of the value of the Estate, from cash, money held in a bank account or through the sale of the deceased’s assets. It is sometimes necessary to sell the deceased’s property if the cash and sale of other assets will not generate enough value to cover the Inheritance Tax amount due. This is still the case regarding a shared ownership property. However, as this is a complex area of law, it is advisable to consult with a qualified specialist in order to discuss your personal situation and how your Estate could be affected by the legal status of any Halstead property that is subject to shared ownership.

At Andrew Douglas Wills and Legal Services, we are specialists in this complex area of the law and as such we can offer advice based on our expert experience, in order to ensure that your wishes will be fulfilled to the fullest extent possible after you die. What is more, we offer a completely free initial consultation to discuss your personal requirements so, regardless of whether you live in Halstead or the surrounding areas of Essex, why not call today?

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