Claiming Transferred RNRB

Trusts Discussion
1

Would a surviving spouse’s right to occupy the family home for her lifetime and exchange the property still be treated as an IPDI if as an additional clause to the usual right of occupation and right to exchange the home for another she becomes permanently incapable of residing there or for fails for a time which the Trustees in their discretion consider unreasonable to perform any of the obligations to maintain the property the wife’s rights shall end and the Trustees shall hold the property for the children of the husband who died first.

In this scenario could the RNRB be transferred from the husband’s estate or would it be lost in this scenario?

Any advice on this would be very helpful. Thanks.

2

It is possible in such circumstances for a downsizing allowance to be claimed provided some part of the IPDI owner’s estate on death is “closely inherited”. Relief for the amount so inherited is limited to the value of the “former qualifying residential interest” at the date the IPDI terminated and possibly subject to taper. The entitlement may be affected if the death estate also contains a QRI.

Jack Harper

3

Thanks Jack that’s very helpful. It will be closely inherited so that part is fine.