IHTM16133 - Rights of residence: action in Compliance Group

The leading case on rights of residence for IHT is IRC v Lloyds Private Banking [1998] STC 559 (see next page)

Most situations that arise in practice can be grouped under five headings:

• The settlor (or testator) owns the entire property and gives it to trustees for a single beneficiary ( IHTM16135) on trust for life (or any shorter period)
• The settlor (or testator) owns the entire property and gives it to trustees for more (or potentially more) than one beneficiary ( IHTM16136)
• The testator is a joint owner ( IHTM16139) and by will provides for the other joint owner to enjoy occupation of the whole undisturbed
• The testator is a joint owner and by will leaves his or her share to a third party
• The testator is a joint owner and leaves his or her half-share to trustees on non- interest in possession trusts, the other joint owner remaining in occupation as before

You should refer any other situations involving a right of residence to Technical Group.