Beneficial Life Interest in Property/Inheritance Tax/Will 10 January at 5:19PM in Deaths, funerals & probate 1 reply 130 views

DorothyJXL5

Good afternoon

Newbie here, so please be kind and patient, as this may be obvious to most of you:-

I wonder if anyone is able to offer advice regarding being a lifetime beneficiary in a property please,  and possible Inheritance Tax implications?  

My partner and I are getting married later in the month and are in the process of revising our Wills for signature after the event.  

We both own more than one property outright which provide a rental income, but our family home is a house which we have chosen and refurbished together, although it is owned outright solely by my partner.  We will each be leaving our estates to our own children respectively, with the exception of the marital home, which he plans to leave to me as a lifetime beneficiary so that I can continue to live there until my death, at which time it will revert to his children.  

Am I right in thinking that the value of this property at the time of my death would form part of my estate for Inheritance Tax purposes? If so, is there anything I can do to mitigate this as I already have significant Inheritance Tax liability?  Thank you.

Keep_pedalling

If really sounds like you and your future husband should sit down with an IFA to look at some IHT planning. If the bulk of your assets are tied up in property and your joint assets exceed £1M then It is quite difficult to reduce any IHT liability you may have.