RNRB where deceased only had a beneficial interest

The deceased provided the purchase price of a property in 1998 when she and her husband divorced. The property was purchased in the name of her daughter. They then signed a declaration of trust under which the daughter declared that she held the property on bare trusts for her mother absolutely. She lived in the property with the deceased until the death of the deceased. Her whole estate goes to her daughter.

My question is whether RNRB is available to the deceased in these circumstances where the deceased only had a beneficial (and not) a legal interest.

Meaning of ‘qualifying residential interest’ under section 8H: ‘Residential property interest’ means an interest in a dwelling house which has been the person’s residence at a time when the person’s estate included that, or any other interest in the dwelling house – s. 8H(2).

It seems to me that the section does not distinguish between an equitable (beneficial) and a legal interest.

I would appreciate some thoughts on this. Thank you.

Yes, the deceased’s estate will be entitled to the RNRB.

IHTA 1984 s8H refers to “… where the person’s estate included that…” and s5 refers to
"… the aggregate of all property to which he is beneficially entitled…'.

Malcolm Finney

Thanks Malcolm. Much appreciated.