I have today met with Executors of an estate where there is a legacy of the nil rate band to adult children with residue to wife, so no IHT issues.
The potential fly in the ointment is that the deceased and his surviving spouse made a gift of their holiday home in Spain to their children in 2012. The son has said he has been told that it is subject to an usufruit for benefit of Deceased and wife. Would this be viewed as a GWROB and therefore a failed gift to be subject to IHT? Does the fact that it was initially owned jointly with surviving spouse have any effect?