Life Interst Trust and buying out remaindermen

Trusts Discussion
1

Can members confirm if I am approaching the following matter correctly:-

H and W now both deceased gifted 33% of their property to S1 (son 1) in their lifetime. In their Wills they left their property on trust to each other for life and then to S2, S3 and S4 in equal shares. Residue was left to S2, S3 and S4 in equal shares. (S1 received nothing in their Wills). W died in July 2016 and H died in March 2017.

S1 now wishes to pay £25K and S2 wishes to pay £100k to S3 for his share of the property split unequally among them. Can the Executors simply appropriate the share of the property to S2, as he received cash under the Will or is this not possible, as it is a separate trust in the Will and not a residuary gift?

As S1 received nothing in the will I assume only he will have to pay SDLT on his share? Am I correct in this reasoning or would members approach this differently.

Claire Carr
Rexton Law LLP

2

Are any members able to contribute their pearls of wisdom on this? I was thinking perhaps it would be possible to do a Deed of Variation of H’s Will leaving a legacy of £25k to S1 so that more of the house could be appropriated to him without SDLT being payable?

Any advice would be gratefully appreciated!

Claire Carr
Rexton Law LLP