Mitigating CGT on 1/2 share of property will trust

H + W owned home as TiC. H dies and his share of property goes into trust for W to reside in for life and thereafter to their only child (C).
W dies within 6 months of H and both have died within last 2 years.
In order to minimise CGT on increase in the property value following death of W it is proposed that the property is to be appropriated to C and also C’s wife (who is not beneficiary under the Wills of H+W) so that they can both use their annual CGT exemptions.
I think there will need to be a Deed of Variation for W’s share of property to include C’s wife as a beneficiary but as H’s 1/2 share is already in Trust would a DOV be the correct route? If not I would be most grateful for alternative ways to achieve the CGT saving. Many thanks.

C + C’s wife could make a DoV in relation to the half share owned by the estate so that they owned 1/4 each.

C was absolutely entitled to the half share in trust from the date of death so could, if it were beneficial, just transfer half of it (a 1/4 share of the whole) to his wife on a no gain/no loss basis.

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As Andrew Goodman has already pointed out, gifts between husband and wife are on a no gain/no loss basis. Therefore, however it is done C’s wife will acquire her share at the appropriate share of the Probate value of the whole property on W’s death. The Trustees and the Executors must assent their respective shares to C who can then assign whatever share he wants to give to his wife.

Graeme Lindop
Probate Consultant
Coles Miller Solicitors LLP