I appreciate this questions has been posted before, and I have looked through some of the threads, but I would like to pose a similar question if I may.
W dies with 1/2 share property valued at £400K left on 5 year RoO to 2nd H (usual ending on death, re-marrying etc). Residue approx £120K equally between her two children and H. I don’t know Hs age, health or wealth etc (this is a tentative query at this stage from a friend of a friend).
Having discussed with a colleague we believe RNRB available but would then be a PET on Hs estates when he vacates the property. Though we are unclear what happens if he dies while still in occupation - would it aggregate as a Trust asset, which seems to us the correct outcome.
Putting other issues aside for this question, would executing a DoV so daughters receive Ws property share absolutely and retain 2/3 residue, could even alter the residue slightly, be worth considering. On estimated figures this would lead to NRB/RNRB of £475K with approx £480K to chargeable benefs = IHT £2K. This IHT charge now may be considered worthwhile, particularly for H as he would have a further 7 year wait where his estate could take the hit. I don’t know the extent of Hs personal wealth though it will be at least £450K, assume higher, with house and Ws estate.
Thoughts from greater minds than mine welcome as always…
Parker Rhodes Hickmotts