H & W put jointly owned property into lifetime trust 2013 - obviously a GWROB which was not pointed out to them at the time (surprise surprise) no rent paid so cannot be a PET.
Original trust property sold when they downsized - new property held by trust and excess funds retained in a bank account.
H has now died. Assuming value for IHT400 is value of whole property at date of his death plus reference to the trust bank account?
Bit of a mess all round as the clients were told by the company who set it up that it would protect them from home fees and on the IHT front!
Hi Katherine,
I wonder how you dealt with this scenario? I have a similar scenario, but H has recently died, and W died some years ago - both well after 7 years of making the gifts.
I’m not sure if we are in a pickle though.
On W’s death, the GROB on half the value would have used up her NRB. Luckily, the half value was under the NRB so, all well.
But, now, on H’s death. There are 2 IHT forms that appear relevant. IHT 403 - Gifts and IHT418 Assets in Trust.
When Valuing H’s share of the house - is it still his half-share that he gave away to set up the trust? Or is it the full value of the house that he had an interest in following his Wife passing away? The latter obviously producing an adverse effect due to the limited availability of her NRB (or what’s left of it)