Can I use different solicitors to do Deed of Variation for will?

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82139556#Comment_82139556

Scrolling down the link below, HMRC does expand on what is considered direct lineal descendants and restates step children are accommodated and their remoter issue ( eg great step children) as well as foster children and even court appointed guardianship arrangements, so the lineal descendant definition has been stretched to a very considerable extent-

https://www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band

One trap to look out for as it applies to lineal descendants howsoever defined, is leaving a house to 'children' subject to them surviving to a contingent age ( age 21 is the popular one).

Such contingent gifts on trust are always to be avoided for a variety of reasons but to be especially noted the residence nil rate band is lost in that scenario as explained in the link.

ljayljay

https://forums.moneysavingexpert.com/discussion/comment/82139587#Comment_82139587

Thanks, however...

Apart from the terminology of 'lineal descendant' I am only able to see a specific mention of 'step child' on the HMRC manual.

The reason why I am now checking is because a few years back a solicitor specifically advised me that the 'lineal description' only went down as far as 'step child'.

A quick search on an AI site (that I don't always trust) also states...

'No, a step-grandchild is not treated as a lineal descendant for residence nil rate band (RNRB) inheritance tax purposes in the UK. Only biological children, adopted children, stepchildren, and grandchildren are included as direct descendants.'

I would definitely be interested to know what is 100% accurate as may look at revising our wills.

Dead_keen

Apart from the terminology of 'lineal descendant' I am only able to see a specific mention of 'step child' on the HMRC manual.

HMRC's manuals give its view of how the legislation works and does not necessarily cover all situations (and is not necessarily correct).

You quote AI and want to know what "is 100% accurate". Unfortunately, 100% accurate is not how tax works. There will always be different views on things and I can google "Are step-grandchildren considered direct descendants re main residence nil rate band" and come up with different views. Ultimately, it will be the courts to decide and that will never be 100% certain.

As I said earlier, my answer (which I am very confident about) is "Yes". But I am just an unhelpful random person on the internet. So I thought I'd explain step-by-step (pun intended) why I think a step-grandchild qualifies as a direct descendant for the residence nil-rate band.

Property is “closely inherited” if it is inherited by, among others, a lineal descendant of the deceased. As I mentioned earlier, the legislation also says:

A person who is at any time a step-child of another person is to be treated, at that and all subsequent times, as if the person was that other person’s child.

Suppose G has a child, C, and C has a step-child, S.

The bit of legislation I quoted requires S to be treated as C’s child. As C is G’s child, S is consequently treated as G’s grandchild and therefore as G’s lineal descendant for RNRB purposes.

The legislation also expressly deals with the converse situation, where G has a step-child and that step-child has a child. This says that where someone is treated as another person’s child, that person’s lineal descendants are also treated as the other person’s lineal descendants.

In particular, where under any of subsections … one person is to be treated at any time as the child of another person, that first person's lineal descendants (even if born before that time) are accordingly to be treated at that time (and all subsequent times) as lineal descendants of that other person

Therefore, both a child’s step-child and a step-child’s child can be direct descendants for RNRB purposes.

In term's of HMRC's manuals, there is discussion of lineal descendant here and here but they do not address your exact situation. One bit that is kind of helpful is that it explains that the following do not qualify:

Property passing to the parents, brothers and sisters, nephews and nieces or other non-lineal descendants of the deceased is not ‘closely inherited’.

No sign of step-grandchildren being mentioned there so there is no explicit statement that HMRC do not think step-grandchildren qualify.

ljayljay

https://forums.moneysavingexpert.com/discussion/comment/82140073#Comment_82140073

Thanks for your detailed response.

I also worded my question slightly differently on another AI site & it seemed to suggest that RNRB would be applicable for a step grandchild.

I was just thinking that our situation is not particularly unusual & so a solicitor dealing with wills & HMRC could be a bit clearer.

Under normal circumstances we would be just looking to leave bequests equally to our joint children/step children. Should we do this, step grandchildren rules would be irrelevant to us.

However, the issue that we have is that one child (my step child) has severe mental issues. With their agreement we have left 50% of their share to their child, my step grandchild. I just want to ensure that the executors, our other children/step children, are not left with an overly complicated probate on our passing, or at least know what processes apply. Although, ultimately of course, it will not be my problem to sort out.