Legacy of interest in main residence

Trusts Discussion
1

I am looking at a Will, which on the first death leaves a half share in the main residence owned jointly by H & W to daughter, with the proviso

“that my wife be allowed to have the full use and enjoyment of that property rent free for as long as she requires it and that the property will not be sold without her prior written permission”

Following death of H, I presume that this would be registered as a restriction to the title of daughter at the land registry, but am not sure whether this is in effect the creation of a life interest trust for W and at what stage the RNRB applies, whether on the first or second death.This is not a form of words that I would normally use.

steve hall
cbsl accountants

2

It creates an IPDI in favour of the wife, not a life interest as it only lasts until she ceases to occupy.

If this is during her lifetime, the trust terminates, and she makes a PET. The house would not be in her estate for iht purposes so downsizing relief would have to be relied on.

If it is on death, the RNRB will then be available.

Simon Northcott