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Lifetime ISA for daughter & will
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amandabroadhead
Posts: 2 Newbie
My daughter will inherit my share of the residential home when I die (I have cancer) but my husband will have a living interest in the house until he dies & also owns a share of the house outright in his name too. If my daughter buys a house after I die, does this mean my daughter is not classed as a First Tine Buyer’ and therefore this ISA will not be the best savings product for her situation? I’m struggling to find anything online which will give me a definitive answer? Should I contact HMRC? Many thanks for your hellp
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If she owns a stake in a property then she isn't a first time buyer according to the definition used for LISAs.
Edit: as below, she may not own a stake initially, if it's handled via a trust.1 -
No need to contact HMRC. Might be better to contact Macmillan or another agency that can help out with the financials and other paperwork in a prompt fashion.
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I'm calling the very knowledgeable @Keep_pedalling
From my inexpert understanding it sounds as if the will might be setting up an Immediate Post Death Trust (IPDT) with your daughter as 'remainderman' , and if so I'm not sure if that means that your daughter would still be considered a first time buyer or not while your husband remains alive.1 -
What your will creates is indeed an immediate post death interest trust. The trust will the legal owner of your share your husband will be the beneficial owner. This does not use any of your NRB as it is covered by spousal exemption. Your daughter will not actually own in until your husbands death so she has not lost her first time buyer status and she won’t get a CGT liability when it is eventually sold.The trust does need to be registered with HMRC within two years of your death. For IHT purposes The whole house will form part of his estate.2
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Thank you all for your advice - it’s abit of a minefield but I think I’ll speak to my will conveyancer.0
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