Advice sought in relation to a possible deed of variation where the deceased left his house to his trustees subject to a right to occupy for his son for life or until he moves out, with a gift over to his other two children. The issue lies in the Gift Over wording:
“…jointly for Son and Daughter provided that if either person dies before attaining a vested interest leaving children then those children shall take jointly the interest…”
Son has no children, and Daughter has 2 natural and 2 adopted adult children. I am not sure therefore that the Son and Daughter have a vested interest in order to vary the trust.
The family wish to vary this gift, preserving the right of occupation, so that the 2 natural grandchildren are the beneficiaries of the gift over. All parties, including the adopted children, are in agreement that the grandparents would have wanted this.
I do not see why the remainders to the ROO are not already vested in interest, though not in possession while the son occupies. They do not seem to be contingent. The wording “dies before attaining a vested interest leaving children” are apparently directed to the possible predeceasing of the remaindermen which, as I understand the OP, has not happened. The only necessary parties to the variation are the Son and Daughter. There is no change to the IHT payable on death so the PRs are not required nor is the son with the ROO as that interest is not affected. Note that a variation under s142 IHTA and s62(6) is not strictly necessary as the remainfers are excluded property for IHT and not chargeable assets for CGT. The daughter will be the settlor for income tax if income is ever generated once the remainders have vested in possession and is paid to her children while they are minors.