We have an estate where H & W settled their home in trust during their lifetime as joint tenants. They reserved a right to income.
H has now died and IHT400 is being completed.
The gift into trust is an obvious reservation of benefit and therefore must be included in the IHT400 as such (H’s half share valued at date of death).
The question is - does the half share of the property gifted into trust also have to be included? We have sought advice and have been told it should be included twice however we have nothing to base this upon (reference). To be taxed twice would seem to be inequitable and we need to be sure of our facts.
Residue of estate passes to spouse.
Any input greatly appreciated as clients are obviously concerned!