Readers' forum : Estate widow

A deceased businessman left a will directing any assets eligible for business property relief from inheritance tax into a discretionary trust along with the nil-rate band. Everything else was left to his widow. The estate is in the process of being administered.

There are two companies and a partnership involved. All are clearly trading and I believe they meet all the conditions for business property relief. The company articles of the one company have an option for the other shareholders to buy out the shares and there is life assurance in place written in trust the proceeds of which are intended to be used to buy the deceased’s shares. The option has immediately been exercised and so the estate will get the cash. What I am unsure about is what can pass into the trust because cash alone will not qualify for business property relief.

The other company was...