Will and widow

Mr H owns two properties: his private residence and a bungalow which is let. He has just remarried.

In his will he intends to allow his widow to occupy the matrimonial home rent free for 12 months. He is leaving the bungalow to his grandchildren subject to his widow being able to live there rent free from 12 months after his death and for as long as she then wishes.

The logic is that the bungalow is a more suitable residence for his widow but it may take 12 months for the existing tenancy on that property to come to an end so that she can then take up occupation.

We believe the wife’s interest in the house will qualify as an immediate post-death interest (IPDI) and be spouse-exempt for inheritance tax purposes.

However what happens at...