Life tenancy

sammyjammy

mobileron said:

I had this issue.was solved by getting married to my partner.She in turn will leave her percentage of the house to my children on death.  No IHT involved.

Unless she changes her mind if you die first!

theoretica

Shezz said:

Is this correct as I cannot get my head around why inheritance tax should be paid twice for my son's to eventually inherit it. 

In effect your partner is inheriting the property (with a limitation that they cannot sell it and spend the money) and then your sons inherit.  You are adding a specification of who inherits next - and that won't be a reason for the state to give up a round of tax it can claim.

getmore4less

Giving partner spouse status with a will and life interest solves the tax issues you were concerned about.

It introduces issues with equitable interest but they probably exist after 30 years anyway.

It's not easy  surprising how quick you can go from nothing to being a potential IHT disaster when life just goes by.