I have a case where property is owned as to 20% for surviving spouse on a qualifying IIP. The other 80% is owned by discretionary trust. Both trusts derive from deceased spouse’s variation of his will. He was the sole owner of the property when he died. Trustees of DT have never formally exercised powers to allow surviving spouse to occupy. Practically however, she has been occupying exclusively and paying all outgoings since his death in December 2013. Are HMRC likely to argue she has a qualifying iip in the 80% as well as the 20% and all of it form part of her estate for IHT?