I have a case where A co-owns a property with B as TIC. They were not married. A has died and A’s estate is liable to IHT. A’s Will gives a right to occupy their 50% share of the property to B with remainder over to A’s children. On the face of it, this prevents a claim for the residence allowance because A’s property interest is not immediately inherited by a direct descendant.
It is now being suggested that B and A’s children vary the terms of the Will to provide for A’s property interest to pass to their children to acquire the residence allowance. There will then be a separate declaration of trust between the parties allowing B the right to remain in occupation.
Do forum members think this is valid planning?
I seem to remember a case (Lau?) where a variation was being entered into with an associated transaction planned and this did not work.
Brewer Harding & Rowe