I wonder if anyone can help with the following:
The deceased has left his house to his trustees giving a right of occupation/to income for life or earlier remarriage to his partner (not spouse or civil partner) remainder to the adult children. Otherwise under the Will there is a legacy of cash to the partner from which IHT on the whole estate is to be paid. The IHT and assets are such that it requires this legacy plus the entire residue (due to adult children) to pay the IHT and this still leaves instalments that will need to be paid over the next ten years in relation to the property held in the trust.
The trustees would like to sell the house now, pay all the IHT and buy the partner a new house but the partner wants to stay put.
I am looking for clarification as to whether the executors are able to sell the house to pay all the IHT and transfer the balance to the trustees - the trust being established from that point or whether there is a trust of land established from the date of death with a beneficiary in occupation.
The duty to consult is excluded by the STEP provision but my understanding is that the right to occupy s.12 and 13 TLATA 1996 are not.
Any suggestions/advise gratefully received, as you will have gathered there is no cash after IHT.
Justine Alford
Burningham & Brown Solicitors