I have a situation where deceased (W) died leaving life interest in main residence (owned T-I-C with 2nd husband (H)) and life interest in income from a commercial property held in W’s sole name, to H with W’s children as remainderman on both. Residue to children.
H has gone into a care home (3 months after death of W) and children are selling main residence.
- Does the life interest in main residence still attract spousal exemption?
- Does the commercial property attract spousal exemption?
- Can RNRB be claimed on estate?
There is no TNRB as first husband is still alive.
If there is no spousal exemption then there is a significant IHT bill due.
Any comments would be gratefully received.