Stepchildren and RNRB

If A marries B (who has children from a previous relationship), then A divorces B and marries C, and C leaves assets in their will to B’s children (i.e. A’s stepchildren from his first marriage), is the RNRB going to be available?

The dictionary definition of stepchild refers to the “child of your husband or wife from a previous marriage”, which would suggest RNRB would not be available.

Does anyone have any experience with HMRC?

IHTA 1984 s8K(3) extends “child” to include “step-child”.

“Step-child” refers to “your wife’s or husband’s child by a past marriage or relationship”

On C’s death C is married to A but the children to whom C leaves property are those of B from a previous relationship (not A).

Children do not therefore closely inherit and no RNRB applies.

Malcolm Finney

Hi
I have an IPDI, which is left to the testator’s stepchildren (from his first wife) on the death of the life tenant - his second wife.
The wording under s8K(3) IHTA 1984 seems to indicate that a person’s step child is be treated as that person’s child:

(3)A person who is at any time a step-child of another person is to be treated, at that and all subsequent times, as if the person was that other person’s child.

Therefore, on the death of the second spouse should not RNRB be available as her deceased husband’s step children should be treated as his children and therefore lineal descendants?

I don’t believe a RNRB will be available.

On the death of the wife of the testator (Ie his second wife) the property passes to the children of the first spouse (who are step-children of the testator) . However, such children are not lineal descendants of the second wife and hence no inheritance by lineal descendants occurs.

Malcolm Finney

I agree with Malcolm.

The children must be step children of the life tenant for RNRB to apply on her death.

Paul Saunders FCIB TEP

Independent Trust Consultant

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