I have an issue whereby husband died just under 10 years ago and there was NRB discretionary will trust And nothing was done in respect of this and the family home was left as tenant in common with the deceased name on it. Wife has now gone into full-time care tax advice Taken and they’ve created an Equitable charge and registered with the TRS. My concern is that I do not think there is any trust as nothing was done and mum lived in it therefore Due to their inaction could it be argued by HMRC and the local authority as it be seen to be read back under section 144 IHTA And would it be effective against Local authority Or would it be seen as a deprivation of an asset? I’m not sure what the value of the house was at date of death and they’ve secured the loan against the new value. Bit of a mess advice would be greatly appreciated
The Trust was automatically created on the death of the husband and the Will shows the intent of placing the property owned by the husband into that Trust. The fact that this was not done by changing the entry in the Land Registry does not negate the fact that half of the property is protected. I presume you mean that the Local Authority have registered an Equitable Charge in respect of the care costs that need to be met from the half property owned by the wife, which is not unusual. It would be prudent to apply to register the interest of the Trust and establish the fact that the Trust hold that part for named beneficiaries.