Property originally owned by second marriage H & W 40/60%. W died 2005 leaving H right of residence for life. H died in 2019 leaving his 40% to his son. Remaindermen of W share were two daughters, one of whom
has predeceased so her share passes to her children, the other daughter assigned her interest to her three children in 2014.
H’s son wants to buy remaining 60%.
Property submitted in H’s IHT400 @ £331000 (his accountant has claimed a 15% discount that I don’t think they are entitled to and am not acting in the probate) and has agreed to pay £390,000 for the 60% share.
I anticipate there will be a £59,000 capital gain (assuming HMRC reject the discounted valuation). There was no power of appropriation in the W will and trustees have no statutory power to appropriate.
I would like to know who is making a capital gain, i.e. is it the Trust with therefore only a trustees allowance, or does the property automatically vest in the beneficial owners on the life tenant’s death so
that in this case eight of them share the gain. If it does not automatically vest can the trustees make a declaration of trust that they now hold the 60% share on behalf of the remaindermen?
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