Will drafting—the family home
Will drafting—the family home

The following Wills & Probate practice note provides comprehensive and up to date legal information covering:

  • Will drafting—the family home
  • Potential situations
  • Possible solutions
  • A married couple who own the property with children and/or other dependants
  • An unmarried/non-civil partnership couple who own the property
  • A single property owner

Will drafting—the family home

The family home will, in most cases, form a disproportionately large part of the value of family assets. This will provoke a number of issues, among the most important being:

  1. its value may cause a significant IHT problem in its own right, as well as a significant contribution to the overall IHT burden

  2. there will be a natural desire for the property to remain in the ownership of a surviving spouse or one or more children

It is because the value of the family home will often result in an IHT liability, even when two nil rate bands are available, that in past years, there have been various arrangements created by legal and taxation practitioners to exploit loopholes in tax legislation. HM Revenue and Customs have consistently responded by introducing anti-avoidance legislation to prevent the use of such arrangements. Examples include the anti-Eversden legislation introduced by Finance Act 2006 into section 102(5A)–(5C) of the Finance Act 1986 (FA 1986) following the House of Lords decision in IRC v Eversden, the anti-Ingram legislation introduced by section 104 of the Finance Act 1999 into FA 1986, s 102A to reverse the Court of Appeal decision in Ingram v IRC on the reservation of benefit rule (GWR) and the pre-owned asset tax (POAT) introduced by section 84 of the Finance Act 2004, which had a

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