I’m working through a will drafted by another practice with what appears odd wording. There appears to be an interest in possession trust which was created from the passing of the first sister. Both sisters had mirror wills allowing for the remaining one to remain in the property. Could someone clarify the type of trust established by this wording, and also whether the whole property or just the deceased share of property is considered for IHT purposes.
3. I GIVE free of IHT my share and interest in equity as beneficial tenant in common in the proceeds of sale and in the net rents and profits until sale of the freehold property X and all other interests therein and the actual proceeds of sale thereof to my Trustees to hold the same upon and subject to the following trusts and provisions:-
a. While my sister X remains alive and desires to reside in said property hold in good repair etc.
b. Subject as aforesaid my Trustees shall pay the income from the proceeds of sale of said property to my said sister X
c. Subject as aforesaid my Trustees shall hold the same as to both capital and income upon the trusts relating to my Residuary Estate.
I GIVE DEVISE AND BEQUEATH all my real and personal property not otherwise disposed of by this my Will any Codicil hereto unto my Trustees UPON TRUST to sell call in collect and convert the same into money with full power to postpone such sale calling in and conversion for such period as they think proper without being responsible for loss.
MY Trustees shall out of the moneys to arise from the sale calling in and conversion of my said real and personal property and out of my ready moneys pay debts, taxes etc and shall stand possessed of the residue of the said moneys and the investments from time to time representing the same and of any part of my estate which remains unsold in trust as to both equal capital and income for such of them my said son Y and grandson Z as shall survive me….