In February 2015, my mother transferred her house into the joint names of herself, myself and my sister as tenants in common. This was registered with the Land Registry.
The ‘Deed of Appointment and Declaration of Trust’ stated that the house was held one half by my mother and one half in the nil rate band discretionary trust set up in my father’s will, with the intention that the house provided a home for my mother as long as she wished. She did live there alone until her death in December 2021, i.e. within 7 years of making the transfer.
My sister and I are the surviving trustees of the nil rate band discretionary trust.
For inheritance tax purposes, would the the following statements appear to be true?
We have to report the transferring of the house to us as a gift with reservation of benefit, using 50% of its total value.
We can’t claim RNRB because we already, in effect, own half the value of the house and the other half is held in the trust.
Thank you.
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