• Husband dies leaving NRB legacy to children and residue to surviving spouse.
• The estate includes some APR/BPR.
• Children and surviving spouse make a deed of variation leaving all the APR/BPR property on a discretionary trust whose beneficiaries include spouse and issue.
• APR/BPR is claimed but HMRC refuse relief.
• Within two years of husband’s death the trustees appoint the APR/BPR trust fund to the spouse absolutely.
• In principle does this work so as to secure spouse exemption on the APR/BPR trust fund for which HMRC has denied relief?
• If not, are there alternatives that might?
In principle, it does work, William. Very neat and almost too good to be true, but for once it is true.
Thank you so much for your reply which is greatly reassuring. As you say, almost too good to be true!