Interest in Possession created during lifetime

Trusts Discussion
1

I am dealing with an estate whereby Wife and Husband both created a ‘Family Trust’ in 2014 where they each gave themselves as IIP in their respective shares of the family home and then on their death it became a IIP for their spouse and on spouses death a Discretionary Trust.

Is this is GROB to be declared on her estate? I am unsure why such a Trust would have been created as there is no IHT liability on their collective estates. I cannot find any Letter of Wishes.

I have never come across a trust such as this before.

Many thanks

2

Yes, the initial IIP is a gift with reservation and, on the death of the first spouse, the interest passing to the survivor falls into the relevant property regime.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals