I am dealing with estate of a deceased lady whose Will leaves the house owned in her sole name on life interest to her cohabitee. When the life interest ends, the house passes to the residuary estate. The residuary beneficiaries are the cohabitee and the deceased’s two sons, who are not the cohabitee’s children.
Is there any way or variation which can enable the RNRB to be claimed on the deceased’s estate whilst giving a right of the cohabitee to live in the house?
Pictons Solicitors LLP
You say that the cohabitee is one of the residuary beneficiaries, so presumably his estate will receive a share of the property on the termination of the life interest? If that is correct you could consider passing the property directly to the cohabitee and children because if the cohabitee owns a share of the property he/she is entitled to occupy it (even without an express life interest) and the children could only force a sale with a court order. Not ideal, and there may be CGT issues for the children, but could be an option depending on the circumstances.