I am dealing with an intestate estate where the deceased has assets of around £150k. Under her late uncle’s Will (prepared in 1981; he died in 1982) one of his properties passed to his Trustees upon trust for them to permit the said xxx to occupy the same during her lifetime or until she shall no longer use the said premises as her principal place of residence…
The property now has an open market value of between £325k and £450k (there is development potential).
I understand that when a life tenant dies, the value of the property is added to their estate for IHT purposes and that the IHT payable is apportioned between the Trust and her estate.
My concern here is whether the value of the property must be added to the deceased’s estate for IHT or not. Does the wording of the Will - I mean the use of the word “permit” mean that she had a right to occupy the property? I’m probably clutching at straws!
I would appreciate any feedback on this question - thank you .