Disregarded Property Upon Death (Estate/Probate)

Bat135

My late father was signed off work 5 years prior to his death.

Due to his illness that eventually killed him.

He rented his house and had no savings except a 1/6 share in a piece of land that my grandad left him. This was jointly owned by others as was setup by my grandfather, his brother and brother in law.

min the seeds it says my grandads share passes equally to his siblings. One of which was my dad. 1/6 share.

Anyways. When my dad went to claim benefits due to being signed off work they refused his benefits initially due to this land share being worth more than 16000 threshold.

Eventually he was given benefits as the others signed something to say it can’t be sold. So he proved he had no income from it and couldn’t liquidate his part of the land as the others didn’t want to sell.

This 1/6 share has now been left to me as his son. Although there was no will I am next of kin.

My question is, will I need to do probate? And if so will this seemingly disregarded asset be reregarded upon death? Ie: could the dwp claim his benefits back from the estate? As it’s now being sold the land?

He declared it at the time? And he did eventually get benefits.

Probate usually means dwp look into it as our fears are they will take our inheritance back for benefits awarded to my dad before death as the land is now being sold? From his estate if we do probate?

Bat135

*in the deeds

Zipz

This is an excellent forum to do with inheritance and probate:

https://forums.moneysavingexpert.com/categories/deaths-funerals-probate

MW123

@Bat135

Firstly, may I offer my condolences on the passing of your father, it is always a difficult time, fraught with paperwork and legalities.

It is highly probable that you will need to go through probate to officially transfer ownership of your father's 1/6 share of the land to you. This is because, while the will outlines who inherits, probate is required to confirm the transfer and ensure any outstanding debts or taxes related to your father's estate are settled. While generally necessary, it's always best to check with a probate solicitor or probate office to confirm if probate is needed in your specific case.

The DWP often reviews benefit claims following a recipient's death. Given the initial concerns regarding your father's land exceeding the capital threshold, his case may be subject to review. While benefits were eventually awarded based on the land's illiquidity and lack of income generation, the impending sale constitutes a significant change in circumstance.

This shift from an unsaleable to a saleable asset, notwithstanding prior confirmation of its illiquidity from co-owners, could prompt the DWP to re-evaluate the original benefit award and potentially pursue recoupment. While recoupment is not guaranteed, proactively clarifying this matter is essential with a probate solicitor or the probate office.

Once the probate process is finished and the land is officially yours, you will own a 1/6 share. Also, there might be rules or restrictions already in place regarding the land (like planning permissions) that could impact your ability to sell it. It is a good idea to check the official title deeds to understand any limitations. Any decisions about the land need to be made with the consent of all co-owners involved.

I know it all seems complicated right now, but I am sure everything will work out fine. Take care of yourself.

Bat135

thank you.

Yes it is very difficult and very frustrating.

It’s keeping me up at night.

Bat135

what complicates it is when my dad died, although his share was in his name, we removed it from the land registry. We did this as we couldn’t maintain it and this was done on the promise from our auntie (also a 1/6 shareholder) that we would get our share of it ever gets sold.

She is keeping to her word and has said I should get 80k after estate agents fees.

But surely I can’t just accept this cash and not put it through some kind of probate? As technically my dad owned his share at death? Even though we removed his name from the land registry shortly after?

it’s really confusing me. We actually have a no win no fee medical claim against his care and we need to do probate for this… so if we do I am assuming we can’t leave the land of the probate process?

I am not certain if we are tennants in common or joint tenants?

All I know is we have the original deeds. With my grandad as one of the original three owners. With clear instructions on the deeds that his share gets passed equally to his wife then siblings. So my auntie got 1/6 and my dad 1/6.

It’s a nightmare. And I can’t see a way out?

surely the dwp can’t take my inheritance away from me in exchange for benefits paid to my dad when he needed them to live? Because they initially refused him benefits and then awarded them indicates it was disregarded as capital? They other parties signed something refusing to sell. So it must have been disregarded…

so can they take it back? After this length of time? Was it disregarded I definitely? I don’t know.

My father died 3 years ago and we did notify once back then. And not heard anything from dwp? But as we now need to do probate for the medical case? It’s a mess. We really need help.

Bat135

surely if the asset was disregarded during his lifetime And he needed the benefits during the period of his lifetime. And only because now it has been able to be sold whereas before it couldn’t. Then there is no dwp claim on the estate??