Life interest in house

Trusts Discussion
1

What are the potential consequences (tax and otherwise) of a widow giving up her right of interest in a very simple life interest in the family home? Husband died 9 years ago. Or can she sell and downsize?

The Will clause is pretty basic

I GIVE all my estate or interest in my freehold dwelling house known as xxxxxxxxxxxxxxxxxxxxxx or other the principal house or flat in which I shall normally be resident at the date of my death free of mortgage unto my wife xxxxxxxxxxxxxxxxxxx for her life she paying all rates taxes and other outgoings and keeping the same in good repair (fair wear and tear excepted) and insured against loss or damage by fire to the full value thereof as my Trustees shall approve and from and after her death I GIVE the same to my Trustees upon trust to divide the same into ten equal parts and to hold the same as follows:xxxxxxxx

Thoughts appreciated

Anne Duguid
LGP Solicitors

2

As the gift of the house is to the widow “for her life”, I believe that following a sale of the property she will have a life interest in the proceeds of sale.

Whether or not the trustees can purchase another property for the widow’s occupation will be subject to the further terms of the will. However, as the trust is a “trust of land”, unless specifically excluded, I believe the trustees will have the relevant powers.

Paul Saunders