If the settlor (or testator) owns the entire property and gives it to trustees for more (or potentially more) than one beneficiary, there should be no more difficulties than appear when the settlor gives the property to a single beneficiary (as at IHTM16135), save that, as in many other areas of life, the more persons taking part in the story, the more story lines there might be.
Woodhall v IRC  STC (SCD) 558 featured more than one beneficiary and is an interesting example of a ‘family’ case.
By his will, George G Woodhall appointed his sons to be his executors and trustees. In his will he provided that no sale of the family home was to take place while his daughter Annie and the two sons, Alan and Eric, desired to reside there. Until sale, ‘the trustees shall permit the said three children or each of them to occupy the property on paying outgoings, insurance and ten shillings per week by way of rent’.
George died on 18 December 1957. Eric left the house in 1957, probably before his father’s death. Annie resided there until her marriage in 1958. She died in 1971.
Alan continued to live in the house until his death on 21 April 1997, leaving only Eric surviving.
None of the children paid the ten shillings rent and nothing was made of this point at the hearing.
On Alan’s death in 1997 the Capital Taxes Office (now IHT) claimed inheritance tax under IHTA84/S4 and IHTA84/S49 (1) on the whole property.
The Special Commissioner held -
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