I wondered if anyone had any thoughts on the below:
- The first spouse to pass away died in 2014. The surviving spouse died in November 2022.
- The first spouse to pass away owned a property in his sole name, which he transferred to his son in 1997 at an undervalue. He sold it to his son for 37.647% of the market value at the time. He and his wife continued to live in the property.
- Probate was applied in 2014 and papers submitted to HMRC. The IHT403 confirmed the value of the gift was £103,529 and that there was a gift with reservation (GWR).
- The surviving spouse died in November 2022, having remained at the same property.
- Entire estate now passes to direct descendants and net value is c £800,000.
The executor would like to make a claim for the TRNRB, but there is no QRI now and downsizing rules don’t apply. We think (unfortunately) that, although you can claim the RNRB against GWR, that’s not what we’re doing here as GWR issue arose on the first spouse’s estate. So if there is no GWR now, and no QRI, and downsizing rules do not apply, we believe no claim can be made for his father’s TRNRB.
I wondered what anyone’s thoughts are on this?