Two ladies live together. Residence House is Tenants in Common.
Lady owning 2/3rds of Home was divorced 50 years ago and has 2 Children and 5 Grandchildren.
In her Will she is leaving her Estate to 2 Children and 5 Grandchildren.
But she is wanting to grant a right of occupation to the other 1/3 Owner for up to 2 years after which the house must be sold.
This appears to restrict the ability to claim Residential Nil rate Band.
Any ideas?
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Is it not her share she is leaving to the children/ grandchildren that would qualify for RNRB? If a right of occupation is granted, in the Will for example, is that not an IPDI for the surviving owner which would mean the RNRB is lost. Is it possible to ask the trustees to allow a period of occupation rather than grant it in the Will?
Make the gift conditional on the executors agreeing to let her occupy exclusively for equitable compensation. She has the right to occupy under TOLATA 1996 subject to its terms. The charge does not need to be full market as a sale would require a court order which might be refused in the circumstances or deferred. This would not seem to prevent the children from “closely inheriting “ the deceased’s interest in the house
The two women could agree to that arrangement now. A Court would surely be slow to override it. It would be recipe for trouble for one of them to be unaware of what the will maker intended and perhaps should consider her own position if she dies first. Sharers really should have an agreement dealing with the obviously foreseeable eventualities.
JackHarper
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