I am dealing with an estate where the residue is to be held on the terms of a discretionary trust since the deceased’s husband pre-deceased her. The deceased’s only daughter and grandson are included in the class of beneficiaries, the Will having been constructed in this way because daughter was in the midst of a divorce at the time the Wills were made. The residue includes the deceased’s half share in her home. The deceased had a life interest in her late husband’s half share in the home under the terms of his Will and then husband’s half share in the home is to be held on the terms of a discretionary trust in his Will. Husband died more than 2 years ago.
Daughter and son have been living at her parents’ home and daughter’s divorce is now finalised. Daughter does not own any property in her own name at present. Daughter has decided that she wishes to move from her parents’ home to another property owned solely by the deceased (this property is also part of the residue of the deceased’s estate to be held on the terms of the discretionary trust). Daughter then wants her parents’ home to be sold.
We are approaching the second anniversary of the deceased’s death and wish to make an appointment under s144 IHTA 1984 of at least the deceased’s half share in the home to daughter in order to be able to utilise the deceased’s residence nil rate band. I am tying myself in knots regarding husband’s half share in the home and whether there is anything we can do in order to be able to utilise his residence nil rate band?
Parents’ home has increased in value since the date of the deceased’s death and so we also wish to appoint the whole of this property to daughter so that she can sell it with the benefit of PPR relief. Once the property has been appointed to her (presumably half from deceased’s discretionary trust and half from husband’s discretionary trust) would the Land Registry title for the property have to be transferred to daughter’s name before it can be sold with the benefit of PPR relief? Also, can daughter move to the other property (and perhaps have that appointed to her depending on how the IHT figures work) as soon as parents’ home has been appointed to her or is this likely to cause problems for the purposes of PPR relief?