Mr X owns his house in sole name and he dies leaving a life interest trust in respect of the property for the benefit of his Partner, Miss Y, held on trust for Mr X’s children. Can Mr X’s estate claim the RNRB?
However, if the children of Mr X (or any of them) are also the children of Miss Y, RNRB (or the relevant proportion thereof) can be claimed on the death of Miss Y.
Amy, I have a similar situation and it is only her children but she wants him to remain in the property. I guess RNRB will be lost. I haven’t found a work around yet…
Amy, I would agree with the other replies. It helps me to think of the initial Life Interest being treated by HMRC as the ‘gift’ (and not the secondary interest of the remaindermen). That way I find it easier to see how it is viewed by HMRC as a gift to a non-lineal descendant which defeats the RNRB.