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Tax implications on a bequest of property subject to a right of residence.
A husband and wife prepared a deed changing the ownership of their residence from joint tenants to tenants in common. Each made a will leaving their share of the residence to their six grandchildren in equal shares as tenants in common. However this was subject to the proviso that the surviving spouse would be allowed to live in the property rent-free for as long as they wished or until they die.
The husband died recently and we are wondering what effect this will have for: inheritance tax on the grandparents’ estates; capital gains tax on the grandparents and grandchildren; and any liabilities of the executors and trustees of the grandparents.
Finally could readers advise on whether the property deeds (and the land registry details) can be left as joint tenants with a copy of the severance document and husband’s will attached to them until the wife dies and...
