Deceased died March 2018. Estate nearing completion. Will created Right of Occupation (RoO) for daughter to retain RNRB (total estate was £740K). Property value = £475K. Residue equally between said daughter and son, they have a good relationship.
Would this work to get round aggregation re IHT on daughter’s estate:
Vary Will so daughter and son receive half house absolutely. Son then settles his half share to Discretionary Trust to include his sister, wife and children and possibly himself. s260 TCGA hold-over not a concern, likely that IHT would not be either so settlor-interest may not be an issue (though I would explore non settlor interest with him).
Am I correct in thinking that s225 TCGA would apply for PPR with deceased’s daughter continuing to live in the property?
If daughter moved out during her lifetime, would PPR be lost on that half share (s72 TCGA not applying)? If so, I assume Trust CGT allowance/rate would apply?
Would there be any anti-avoidance issues to consider?
Any assistance with this outline, or any other suggestions, gratefully received.
Karl Taylor
Parker Rhodes Hickmotts