Safe as houses?
KEY POINTS
- The inheritance tax residence nil rate band applies if a testator’s estate includes a qualifying residential interest that is closely inherited.
- Planning may result in the same liability but the amount payable may be borne by another party.
- The residence nil rate band is not set against the property; it simply reduces the tax on the overall estate.
- Revoking an interest in possession during lifetime may result in an increased liability on an early death.
- Although the residence nil rate band does not apply to lifetime gifts it can still apply to property taxable under the gift with reservation rules.
- A revocable life interest trust should come with advice on who bears the tax liability and the risks of a loss of allowances. ...
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