RNRB - unmarried couple

Trusts Discussion
1

I have been asked by the surviving (unmarried) partner of Deceased. They had been together over 12 years and lived as man and wife. She treated HIS children as her own since they’ve been together, although he is now adult.

Will leaves everything to her. So, only NRB available. Tax bill of about £36,000 currently. She is happy to enter into a Deed of Variation to provide for the son and/or grandchildren of deceased (as her won will leaves her estate to them anyway!) to bring into play the RNRB.

However, I am nervous to suggest she varies to provide a share of the house to the (adult) grandchildren of the deceased outright - due to the risks to her (eg, in case of divorce or bankruptcy (one is self employed)).

As audacious as it sounds, would a IPDI in favour of the adult grandchildren for a very short period work? ie, a day or a week or month? I understand that for the IPDI to be qualifying, it needs to be in place as at the date of death, no requirement for it to continue for any particular period of time. I understand that the ending of the Interest in Possession would be a PET from the grandchildren and would need to survive 7 years, but that won’t be an issue as their respective estates are well within the NRB.

Or, are there any other suggestions from forum members?

Thanks

Kamlesh Samji
KRS Estate Planning

2

An IPDI will work, but it must last more than 2 years after the death-see s142(4) IHTA

Simon Northcott

3

Any IPDI in favour of any of the deceased’s children would need to run for at least 2 years from the date of death – s.142(4) IHTA 1984

Paul Saunders

4

I agree with Simon and Paul that IHTA 1984 s142(4) needs to be observed.

S142(4) provides that the IPDI must run for a period in excess of 2 years after death.

It might be worth taking a look at Kevern v Ayres [2014] Ch D.

Malcolm Finney