Am aware that there is no GWROB if parent gifts a 50% share of property to son and if both are occupying the property and so if parent survives 7 years outside of IHT on death., Does the same apply if the donee is a IIP trust i.e. 50% to the trust of which son is life tenant and has right to occupy under terms of settlement, parents retains the other 50% and both parent and son have occupied throughout as main residence.
My understanding is that the exemption only applies to individuals.
Thanks I have a case where the IHT400 is being completed for the deceased parent but the ‘child’ was advised that the share in trust would be outside of the GWROB rules due to co occupation. The legislation just refers to donee occupying.
The ‘child’ is a trustee. Could it be argued that the donee is the trustees and the trustee (child) is in occupation as well as being the beneficiary
I think you are clutching at straws. The question is the definition of donee… I understand this means a person as opposed to an entity. (As the person can be in occupation, not sure if the entity can.)
I am sure greater minds will quote chapter and verse.
Not sure about greater minds but s 102B will not be satisfied.
The lifetime gift into trust for the son (life tenant) does not result in the son being treated as owning the property. It is the trustees (qua their capacity as trustees) that own the property and they cannot occupy the property.
Malcolm Finney
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Thanks Malcolm - that was my initial response to the client but he had been advised otherwise hence me doubting myself. I appreciate the comments on here - Kind regards