The deceased died in 2008 and her will contained a NRBDT. This has not been administered. The estate comprised of a half share (tic) in the property and £20,000 cash and was well within the NRB. I note from a similar previous thread that it is thought that if the property is now sold, the deceased’s half share could be subject to CGT (there is a potential gain of the deceased’s share of £90,000 less the PR’s annual allowance) albeit the husband’s share would qualify for PPR. The suggestion was that the PR (husband) could now appropriate the half share to the trust to constitute the trust and then the trustees could grant a life interest to the husband and then the property could be sold and full PPR claimed. However, in the current case, the husband is now in care and cannot occupy the property. I am assuming, therefore, that this will not work? Wouldn’t this be disadvantageous in any event in claiming the transferable residence nil rate band when the husband dies?
If no action is taken to sell the property/constitute the trust now and the husband then dies, I understand that HMRC would deem the husband’s estate to include a liability (IOU) equivalent to the value of the half share at the date of the first death, plus statutory interest and the transferable residence nil rate band would be available. If that is the case, then does that mean that HMRC would also deem the deceased’s half share in the property to have been assigned to the husband and form part of the husband’s estate for IHT purposes? If that is the case, what would then be the position re: CGT – could full PPR then be claimed if the property is sold after the husband’s death, or would we still have the same problem as above?