Husband divorced 1st wife and has married 2nd wife - husband has 2 children by 1st marriage - 2nd wife has no children but Nieces - H&W now own their property as T in Common - value £750,000
Both want to leave their 50% of property in IIP trust for survivor and then W leaves her 50% to Nieces and H his 50% to sons - Wife and step sons do not get on and leaving H’s 50% to them on his death is not an option (at the moment)
Assuming H dies first
If the will is drafted as above then H’s RNRB is lost - not used because it goes to wife but can be carried forward but then she leaves it to nieces (on her death so no RNRB for her and sons inherit from the trust not from W’s estate) - so H’s RNRB unused and lost
If the wills are drafted as IIP then to sons and nieces together then when W dies she leaves 25% of property to her step-sons ie £187,500 which would be covered by her RNRB and H’s carried forward ie £200,000.
I now this is short by £12,500 but would this work and is there a way to utilise the whole £200,000 for the sons? W knows that she does not have any RNRB unless she leaves to step sons.
Michael Micklethwait
Beviss & Beckingsale