I have clients who are a married couple who own a shop and flat above as tenants in common on one freehold title. The shop is worth 650k and the flat is worth £500k. There are also two children who live in the flat with them. The shop is rented out.
The 1st spouse has now passed away and the Will leaves everything to the surviving spouse who is in poor health.
I am wondering whether it is possible to do a Deed of Variation to the 1st spouse’s estate to gift:
a) just the deceased’s interest in the GF shop to the two children (despite the fact that it forms part of the whole freehold title), or
b) to gift an amount equivalent to the NRB of the deceased spouse in just the Ground Floor shop to the two children and for the half share of the shop to be appropriated to them in satisfaction of this entitlement.
Presumably, if the surviving spouse passes away there will be a 10-15% discount applied for IHT purposes as the survivor was not the sole owner of the entire property?
Also, presumably, the survivor’s NRB can be applied to the shop component that the surviving spouse retained and the two RNRBs can be applied to the flat component that was retained by the surviving spouse?
DWFM Beckman Solicitors