I’m looking for some guidance in relation to an intestacy, whereby the Deceased was survived by her spouse and 3 children, 1 is a minor. As the death occurred prematurely, the spouse wishes to take the entire residuary estate on the condition that he will gift the children a sum equivalent to that which they would have otherwise received via the intestacy but in the hope that he can keep in tact the nil rate band allowance of the late wife. Do you have any guidance on the procedure when making an application to the court for permission to vary the interest of the minor?
If the spouse is thinking of the adult children entering into a variation under s.142 IHTA 1984, the condition that he will make a compensatory gift to them at some time in the future will probably doom the arrangement for IHT purposes in view of s.142(3).
He might need to consider creating, say, a flexible life interest for himself, with the 3 children as the remaindermen.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals