A died in May 2023 and is survived by husband B. A’s will specified that her residuary estate is left to her daughter C and her grandsons D & E in equal share. This share included 50% of the property. No IHT will be involved due to values. However, D is likely to purchase a property soon as a first time buyer. No application for a Grant has been made by the executors and no assets assented as yet and the family is considering a DoV to leave the share in the property to C (existing homeowner) and minor legacies of cash to D & E (both adults). The question is as to the entitlement of D to first time buyer relief and any issues regarding the additional rate of SDLT. Will a DoV be effective for these purposes.
Assuming a DoV would be effective any thoughts on if it is easier to apply for a grant on the current will as is and then enter into the DoV or do this in advance of the application for a Grant?
Thanks in advance
My understanding is that prior to any assent or appropriation or completion of the administration of the estate any interest in the deceased person’s estate a person may have does not count as an interest in property. Hence, FTBR is available.
Malcolm Finney
Thank you Malcolm
Your prompt reply is much appreciated.
If an application for a grant of A’s estate has not yet been made, D will have a potential right to receive a share of the property in an un-administered estate. That right should not prevent D from being a “first time buyer” for the purpose of FTB relief, see para 6 of Sch 6ZA FA 2003. D will be a FTB if he has not previously owned a “major interest” in a dwelling. A major interest must be a freehold or lease of 21 years or more. HMRC accept that a right to a share in a property in and un-administered estate is not a major interest, see para SDLTM09795 SDLT Manual.