Hi, advice sought on the following please:
Widower made a Will leaving his share of property (worth about £500,000) on life interest trust to second wife for her life with his two children as remaindermen. Residue also to wife (worth about £120,000).
Wife dies one week after husband (no survivorship clause in his Will).
Therefore, her estate receives the residue from husband’s estate and I assume the life interest trust is created (albeit just for a week…?); is the value of husband’s share of property also added to wife’s estate for IHT purposes?
Wife has an estate of well over £1.5mill, not including the value of the share of the late husband’s property.
What I’m trying to work out is how to access the widower’s first wife’s nil rate band and residential nil rate band.
Either the share of husband’s property doesn’t form part of wife’s estate in which case we could use the first wife’s allowances for husband’s estate and transfer his balance to wife’s estate.
Or, would we have to think about some sort of deed of variation on husband’s Will…
I’d be grateful for any helpful tips / comments. Many thanks.
Solicitor - Warwick Barker LLP