Tova Borgnine New Home, Bryan Robson Daughter, Articles I

Moor Place Lodge? Either a premium was paid on or after 22 March 2006 or an allowed variation is made to the contract on or after that day. On the death of your spouse as the life tenant, as the main residence is deemed to be part of your spouses estate and is inherited by direct descendants of your spouse then the RNRB is available both your spouses RNRB and your transferred RNRB subject to meeting other conditions. This allows the trustees to invest in life policies, such as investment bonds. However, if there were any gains held over on creation of the trust (which could only apply if the assets were business assets) their death will bring the held over amount into charge. Your choice regarding cookies on this site, Gifting the family home? The maximum rate of IHT for these charges will be 6% but in practice is often zero if the value of the trust remains below the available nil rate band. PDF CHAPTER 12 INTEREST IN POSSESSION TRUSTS - IHT ISSUES - LexisNexis Gordon has had a life interest (the prior interest) under an IIP trust since 1 July 2000. The surviving spouse would be the 'life tenant' and the children would be the 'remaindermen'. For example, a husband owning the family home may want to make sure that his wife is able to remain living in the property after his death, even though the house itself has been left to their children. All transfers into IIP trusts on or after 22 March 2006 are treated as chargeable transfers and are taxed in the same way as relevant property trusts. If the death occurs on or after 6 October 2008 and a spouse or civil partner then becomes entitled to the IIP then the spouse's interest will be known as a TSI. abrdn plc is registered in Scotland (SC286832) at 1 George Street, Edinburgh, EH2 2LL. An IIP trust can be created on death either by the terms of the deceased's Will, the laws of intestacy or a deed of variation. Also, in cases where one beneficiary is entitled to income and others entitled to capital, then the trustees could diversify the trust fund, perhaps by investing in a mixture of OEICs to suit the income needs of one beneficiary, and insurance bonds to provide capital for the others.