IHT main residence & transfers

[Yiannis17]

Morning

I am in dispute with a solicitor as there is a query on what I have suggested to do for a client.

I have an elderly couple with an expensive main residence, no mortgage. The property is held as joint tenants.

I have suggested a transfer of 20% to the children who are still there. The Balance of 80% to be held by the husband and wife. My suggestion was for this 80% to be still held as joint tenants.

I was informed that this would need to be held as tenants in common, ie 40% husband and 40% wife. If on the first death then the 40% of the house will fall in the estate is that correct?

[maths]

H and W hold the legal title as joint tenants (can't be held as tents in common).

They hold the legal title for H and W as joint beneficial tenants (50/50).

If H or W give 20% to S (or each gift 10% to S) then the partial alienation(s) cause a severance to occur of H"s and W's beneficial interests.

As a consequence, post the gifts, H, W and S will each hold their beneficial interest as tenants in common 40/40/20.

However, there is then nothing to prevent H and W declaring that as legal title holders they hold the title on trust as to 20% for S as tenant in common and as to 40% each for H and W as joint tenants.

Maybe a property lawyer can comment on my view.