Single Lady client age 63 with 2 children. Estate value £1.5 Million include house she owns outright. She lives in her house (£300,000 in value) with long term partner who remains married and he and his wife have 1 child. He will not divorce and my single lady will not remarry. The male allows his wife to live in their property held as tenants in common and worth £200,000 (so £100,000 each). The male has little else.
My single lady wants her partner to be able to continue living in her house if she dies first.
So potentially adding Property Trust to her Will to give him life tenancy - that’s all he gets from her estate, rest is to 2 children and any grandkids. Could do Disc trust, but Trustees are an issue.
Assume she has died first. Her Property value of £300,000 later on adds onto his estate value when he dies. He now has an estate of £300,000 (her house value) and half his house value £100,000. Total £400,000.
How does the RNRB allowance come into play here for her - not sure ?
With the male partner not being her husband and the house going through an IPDi Trust does she still get the RNRB (100K +) by passing to the Kids as remaindermen?
Can he, if she dies first take the 2 year option (IOV) to say he does not want the life tenancy, and he then avoids her house adding to his estate for IHT?
Geoff Petherbridge
Bridge Wills Ltd