Hoping someone might be able to clear this one up for me…
Husband dies leaving his half of the home residence in trust for the children.
Wife retains a life interest in the property.
Trustees of Husbands will- Wife and 2 children.
Family now looking to sell the property and re-invest the monies into a new, smaller house for wife to live in (using the trust proceeds and a small surplus from wife’s half share).
Children as trustees will be on the title to the new property, but it is my understanding that the life tenant will be treated as owning the capital for life- unless they surrender their life interest.
As a result, the children will not have to pay SDLT under the “second home” tax rates (the children already own their own homes )
Any help would be much appreciated.
Thanks in advance.
April King Legal