My brother in law has just added an amendment to his will which he believes will reduce the IHT his three children pay without impacting on either himself or his wife. I wondered if any experts in this group could comment on the efficacy and/or side effects of his amendment.
Essentially, both he and his wife bequeath the IHT limit (263k at the moment) to their three surviving children to be held in trust by the surviving spouse until that spouse's death.
The thing that confuses me is this "held in trust" business. If the money is to be held in trust then does this not mean that the surviving spouse is not free to dispose of their assists in any way they choose? Is it not a requirement of this type of arrangement that the 263k be placed in a separate account administered by a third party. I mean, if the surviving spouse has full access to the bequeathed amount then in what sense is it already owned by the children and therefore immune from further IHT?
Sounds to good to be true to me
Steve