I have a Probate matter where the deceased was named as a Discretionary Beneficiary in an inter vivos Discretionary Trust created in 2003. The deceased was not related to the Settlor and the deceased was not a Trustee of the Discretionary Trust.
The deceased has been allowed to live in a property owned by the Trust entirely at the discretion of the Trustees since 2004. The deceased did not pay any rent but did pay all outgoings relating to the property.
As the deceased was occupying the property at the discretion of the Trustees the deceased would not be considered to have the present use and enjoyment of the property and the property would not form part of the deceased’s estate for IHT purposes. My only concern here is that the deceased has been allowed to live in the property for such a long time -14 years. Does that cause any issue in the deceased’s estate so far as IHT is concerned?
Progressive Wills Ltd