In 2011, H&W enter into 2 Lifetime Settlements. H transfers his 50% share of the matrimonial home into his settlement and wife transfers her 50% into her settlement. They remain in occupation.
Under each of the Settlement deeds, both H&W are named as Life Tenants and there is a power for the Trustees to appoint capital to them. In default of that, there is also a power for the Trustees to appoint capital to a discretionary class of beneficiaries - the children - who are also the default beneficairies.
I understand that each of the two settlements are taxed as Discretionary Trusts and potentially iable to the 10 yearly charge etc.
My question is, how would forum members treat the Settlements on death of either H or W given they are both named as Life Tenants in each of the Settlement deeds? Would this count as a GROB?
Presumably there would be no RNRB available. Assuming so and “capital protection” is not the main concern, is bringing the arrangment to an end - appointing back to H&W, a disaster? Combined estates inculding property circa £800k.
Apologies if i am missing “the obvious” and many thanks in advance.
Brewer Harding & Rowe