I am dealing with a trust of a share of the family home, where I am considering to what extent PPRR will apply, and would be grateful for any thoughts.
Husband owns 100% of the family home. On his death, his will leaves:
-50% to his wife (W)
-25% to son (S)
-25% to daughter (D)
D&W continue to live in the property, S lives elsewhere.
In 2013, there were concerns about the W signing away her share of the property to an undesirable individual, and it was put into a RPT with life interest for the W until her death, then a discretionary trust on her death; one share for S and family, one share for D and family, but with scope to add beneficiaries.
W has now died.
S&D are trustees as well as potential beneficiaries. D is still living in the property.
They are considering giving D a life interest in both her and S’s shares, in order to give her additional security of tenure and also so that PPRR can apply to the trust shares.
I believe this will work (but interested to hear any comments!) but am I correct to understand that PPRR cannot apply to the 25% share that S has owned outright, given that he hasn’t lived in the house during his period of ownership?