31/08/2026
September Newsletter
September's here - time to get back on track 🛤
This Month:
Inherited A Property - All Explained: Living Trust v Will Trust: Return To Sender.
Inherited A Property - All Explained:
You’ve inherited a property – what happens next?
Inheriting a home may sound straightforward, but it can bring unexpected costs, paperwork and some important decisions—often at an already difficult time.
Here are the main things to consider.
Could inheritance tax be due?
Many estates fall within the available inheritance tax allowances, meaning there may be no tax to pay. However, this depends on the total value of the estate, who inherits the property and whether additional allowances apply.
Where inheritance tax is due, it is normally dealt with by the executors. The tax may be paid from other estate funds, by selling the property or, in certain circumstances, through instalments. The important thing is to establish the position early, as interest can be charged on late payments.
You may need probate
Probate gives the executors the legal authority to deal with the estate. A property owned solely by the person who died cannot usually be completed on and sold until probate has been granted, although it can still be put on the market.
While waiting, it is sensible to review ongoing expenses such as council tax, insurance, broadband and utilities. An empty property may qualify for a temporary council tax exemption, depending on the local authority.
If there is a mortgage, contact the lender as soon as possible. Some lenders may temporarily pause repayments, but the outstanding balance will still need to be settled.
What if you decide to sell?
There is normally no capital gains tax simply because you inherit a property. However, tax could become payable if the property increases in value between the date of death and the eventual sale.
For this reason, obtaining an accurate probate valuation is important. Selling relatively soon after inheriting may also reduce the likelihood of a large taxable gain.
Where several people inherit the property, each beneficiary may be able to use their own annual capital gains tax allowance.
What if you want to keep it?
Keeping a family home can be an emotional decision, but it is worth considering the wider financial impact.
Owning even a share of an inherited property could affect:
Your first-time buyer status
The stamp duty payable when buying another home
Your ability to use a Lifetime ISA towards a future purchase
The council tax charged if the property is treated as a second home
The rules can be surprisingly complicated, so it is wise to check the position before making any decisions.
Could you rent it out?
Renting the property may provide an income, but the rental profit will usually need to be declared to HMRC.
If more than one person owns the property, the income is generally divided according to their respective shares. Landlords must also meet the usual legal responsibilities covering safety, insurance, maintenance and tenant protection. Also, if you decide to sell the property after renting it out, there may be capital gains tax to pay.
What if several people inherit?
Joint beneficiaries will need to agree what happens next. The main options are usually to:
Sell the property and divide the proceeds
Allow one beneficiary to buy out the others
Keep the property and share the rental income
You will also need to decide whether to own it as joint tenants or tenants in common, as this affects what happens to each person’s share when they die.
If agreement proves difficult, mediation may help avoid an expensive legal dispute.
A little planning can prevent a big headache
Property is often the most valuable part of an estate, so it pays to plan ahead. A properly prepared Will, sensible inheritance tax planning and clear instructions can make matters much easier for the people you leave behind.
Tax rules and allowances can change, and individual circumstances differ, so professional advice should always be taken before acting.
If you would like to review your Will or discuss how your property would be dealt with, please contact Phoenix Estate Planning. We keep estate planning simple and affordable.
✅ Simple & Affordable Estate Planning
Let's talk - give us a call to discuss further.
Living Trust V Will Trust:
When it comes to Estate Planning and utilising Trusts, two of the most common options are a Living Trust and a Will Trust. Let's briefly explore the differences between the two.
Living Trust: A Living Trust is a legal arrangement that allows you to transfer your assets into a Trust during your lifetime. The Trust becomes the owner of these assets, and you can act as a Trustee, retaining control over your property and the Trust. It provides flexibility, ease of Estate distribution, protection from life's unfortunate events such as bankruptcy, sideways dis-inheritance, legal challenges to your distribution etc and you do not require grant of probate to sell the asset placed within the Trust. A Living Trust ensures your assets are managed seamlessly if you become incapacitated, preventing the need for court-appointed guardianship. As and when the inevitable happens, the other Trustees step in to manage or distribute the assets according to your wishes. It works well for a blended family situation.
Will Trust: A Will Trust is a Trust written within your Will. The Trust is established upon your passing away, and your assets are distributed according to your wishes. Unlike a Living Trust, it does provide some protection from life's unfortunate events. On the other hand, It can be particularly useful in situations where the beneficiaries are minors (the legal age of inheritance is 18) or lack the capacity to handle their inheritance.
One of the most popular Will Trusts is the Property Protection Trust (PPT). This is where at Land Registry a change of ownership is done from joint tenants (most common ownership of homes) to Tenants In Common (TiC) ie 50% owned by Mr and 50% owned by Mrs. You then can write your half of your home into a Will Trust, securely gifting it to your beneficiaries but giving the right to reside to surviving spouse. The Trust will have to be created upon 1st passing away.
So, which is the right choice for you? 🤔
✅ Living Trust: Perfect for those seeking ease of distribution, asset control, protection and the ability to manage their affairs during incapacity.
✅ Will Trust: Ideal for those that are sure they don't need protection and that there will be no challenges regarding their Estate distribution.
Return To Sender:
When Elvis passed away on August 16, 1977, at the age of 42, he didn’t just leave behind a catalog of timeless hits and a closet full of rhinestone-studded jumpsuits. The King’s Estate, including his beloved Graceland mansion in Memphis, was valued at millions. But who exactly inherited this fortune?
Lisa Marie Presley, Elvis’s only child, was the primary beneficiary of her father’s Estate. However, she didn’t immediately inherit the fortune due to her young age at the time of Elvis’s death. Instead, the Estate was held in Trust until she reached a certain age.
When Lisa Marie turned 25 in 1993, she inherited the Estate, which had grown significantly under the management of its executors. By that time, thanks to smart management and the continuing popularity of Elvis’s music and image, the Estate was estimated to be worth around $100 million.
Vernon Presley, Elvis’s father, was also named as one of the beneficiaries in Elvis’s Will. He inherited a Trust fund worth approximately $1.35 million and was also named as the executor of the Estate. As executor, Vernon was responsible for managing the Estate and its assets until Lisa Marie came of age.
That's all for this month folks. See you next month.
