Life Interest Trust and Remainderman

Trusts Discussion
1

I wonder someone can assist or point me in the direction of where I might find an answer.

If a will provides for a share in the property on trust to children subject to a life interest to spouse, the interest on the death of the first spouse passes to the children. If one of those children, die after the Testator but before the Life Tenant, their interest now passes in accordance with their will. Is it possible for the gift held on trust to be held contingent on the children surviving the life tenant, so that if one of the children do not survive, their interest will automatically go back to the testators will and pass over to the deceased’s child’s children? Would this affect RNRB or IHT in anyway?

Thank you

2

Many wills include the requirement that a beneficiary must survive the life tenant to inherit, with their “share” passing to their own children (or any one else) if they do not survive.

If, when the life tenant dies, the share of the beneficiary who died before them is not then closely inherited, then RNRB cannot be claimed in respect of that share.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals