"My solicitor listened, kept me updated and delivered."
On the death of the husband 15 years ago, his Will set up a Life Interest Trust for his widow, entitling her to live in his half of the house (she owned the other half) and to receive income from his investments. As time passed, the widow decided that she could live in a smaller house, so she built one in the grounds, having come to an agreement with the Trustees of the Will Trust that, having paid for the new house herself, the Will Trust would receive a greater part of the sale proceeds of the old house in exchange for the new house (built on land partly owned by the Trust) being hers entirely. It was then intended that the Trust be wound up in favour of the children.
Our job was to advise the Trustees on the best way to structure the process from the point of view of Inheritance Tax and Capital Gains Tax, and draft the paperwork required. We liaised with the family accountant and were careful to advise the widow, who was also one of the Trustees, to take independent advice in her capacity as life tenant (beneficiary of the life interest).
