Can anyone offer any advice re the following situation please:
The deceased left his half share of his property to his children from his first marriage – subject to his spouse having a life interest (2nd marriage).
The deceased left all his residuary estate to his children.
Can we claim the RNRB in this situation? The deceased’s share of the residence does pass to his children but the children do not become absolutely entitled until the spouse’s death.
The deceased’s residue (excluding half share of the property) is over £325,000 (circa £400,000). If we can claim the RNRB then there is no IHT due, but if we can’t then there is.
If we can’t claim the RNRB does anyone have any suggestions as to how a DOV may assist here, and what advice you would provide.
The direct descendants (eg children) must inherit the residence which requires them to become entitled to the residence on the deceased’s death; which is not the case here.
It cannot can be claimed now although the unused RNRB could be claimed on wife’s death if she passes the property to the children. Could you use a DOV to alter the gift of residue to pass a necessary sum to the spouse and utilise the spouse exemption over and above the NRB?