I have an estate with an NRBDT and a FLIT for the surviving spouse with discretionary powers to benefit the deceased’s children. Spouse is wealthy on her own and is happy to relinquish her interest in the estate.
The current plan is for the NRBDT to be wound up in favour of the deceased’s children, widow to disclaim her interest in the FLIT and Trustees to also appoint that to the children within 2 years of death to (hopefully) obtain the benefit of the RNRB.
My question is really, would s.142 IHTA apply such to mean that the life interest had never subsisted thereby allowing s.144 IHTA to write back the appointment from the FLIT to the Will, resulting in an absolute gift of the whole estate to the children and thereby allowing us to claim the full RNRB?
I would rally appreciate others opinions on this!