Remainder interest meaning

Refer to the Q&A: Which options are open to an individual who aims to pass their residuary estate, in a tax‑efficient manner, on trust for a spouse for life, followed by a flexible charitable benefit with the trustees choosing the charitable recipients? Would the estate qualify for the residence nil rate band? Charitable Will trusts Practice Note: Will drafting—gifts to charities, particularly the section entitled ‘Charitable Will trusts’, explores ways in which a person may place assets on trust for charity. Although charitable trusts are, in principle, treated as relevant property for IHT, legislation intervenes to exempt property held solely for charitable purposes, whether for a limited period or otherwise...

See Q&A: A and B are beneficiaries under a Will, and B holds a life interest in a property. A now wishes to sell the property and split the net sale proceeds equally with B. How can A bring B’s life interest trust to an end? B has learning difficulties. It is understood the Will directs that certain assets are to be held on trust for B (the sister) for life, with the remainder to pass to A (the client). Where every beneficiary of a trust is of full age and has mental capacity, they can jointly require the trust to be terminated and the assets transferred to them accordingly...

In this issue: Key developments and horizon scanning Transferring property Property management Residential property Property development Property taxes Property in Scotland LexTalk®Property: a Lexis®Nexis community Additional property updates this week Daily and weekly news alerts Trackers New Q&A Key developments and horizon scanning Renters’ Rights Act 2025 As previously reported, the Renters’ Rights Act 2025 (RRA 2025) secured Royal Assent on 27 October. A small number of procedural measures took effect on 27 October 2025, while the remainder will commence by regulations on dates yet to be appointed. See: LNB News 04/11/2025 7. The Law Society has welcomed the RRA 2025, but emphasises that its success depends on government investment in the courts so they can manage the anticipated increase in contested hearings. See: LNB News 29/10/2025 34. Source: Renters’ Rights Act levels the playing field for tenants and landlords. Transferring property Proprietary estoppel — beneficial interest not established...

CASE HUB ARCHIVED -this archived case hub reflects the position as at the judgment date of 2 February 2023; it is no longer maintained. See the timeline for further details. Case facts Outline Appeal brought against the General Court’s judgment of 23 September 2020, which rejected an action for annulment of the Commission’s decision concerning Spanish aid for the purchase of ships (SA.21233). Latest developments On 2 February 2023, the Court of Justice delivered its decision, partially annulling the Commission’s decision. In particular, the Court of Justice held, amongst other things, that the General Court’s analysis rested on the mistaken assumption that only the investors-rather than the economic interest groups (EIGs)-could be treated as beneficiaries of the advantages arising from the tax measures at issue. Consequently, the General Court misjudged the question of selectivity. The ECJ sent the case back to the General Court. The General Court then dismissed the actions, and the parties all appealed to the Court of Justice. The Court of Justice...

An individual looking to enforce an unpaid tribunal award, or a sum owed under an Acas-conciliated (COT3) agreement, can take several approaches: increase pressure on the employer by registering the outstanding sum with the government penalty scheme file the judgment in the County Court and use that court’s standard enforcement methods use the Acas and employment tribunal fast-track enforcement route If an employer fails to pay an employment tribunal award that has been registered with the government penalty scheme, they can also be ‘named and shamed’, with the worker’s consent. The naming scheme does not currently cover COT3 settlements. These, and other possibilities, are outlined in the table below and explored in more depth in the remainder of this Practice Note. Process Who can use it ET or EAT award (including costs award) COT3 settlement Fees payable?...

Where an executor cannot obtain a grant of probate to the testator’s Will, a fixed hierarchy applies for others to do so by seeking a grant of letters of administration (with Will annexed). See Practice Note: Applications for letters of administration with Will annexed. After the executor, those next in priority under NCPR 1987, r 20 are persons with an interest in the residuary estate. Whether a residuary gift has been made can be ambiguous, particularly when the Will has not been professionally prepared. It is therefore necessary to consider what amounts to a gift of residue. Is there a residuary gift? Typically, a Will contains an express disposition of the residue. There are familiar indicators in the language used, and it is generally accepted that many forms of wording can denote the whole or remainder of the testator’s real and personal property, including: all I possess the rest of my money after these the remainder all my estate or property ...

[Your] Will—[ name of testator ]— [ explanatory note ] This [ explanatory note ] sets out the key provisions of your Will in plain terms. Please review it carefully alongside your Will. If anything does not reflect our wishes, please tell [ me OR [ name of person to contact ] ] [ before you sign. ] Revocation When you execute this Will, any earlier Wills or codicils concerning [ your UK estate OR your worldwide estate ] are revoked. As a result, only this Will records your wishes on death in relation to [ your UK estate OR your worldwide estate ]. [ International aspects ] [ [ Your Will only covers your UK assets [ and your assets outside the UK will be dealt with by a separate, local Will OR and your assets outside the UK have already been dealt with by a separate, local Will ] OR Your Will covers your worldwide...

FORTHCOMING CHANGE: Potential changes to Wills Act 1837 The Law Commission’s review of wills culminated in a final report on 16 May 2025. Volume II contains a Draft Bill proposing replacement of the Wills Act 1837. For details of these proposals, including the published draft legislation, see Practice Note: Hot topic—modernising Wills and Modernising wills: Final Report Volume II: Draft Bill for a new Wills Act. STOP PRESS: Abolition of non-dom regime and introduction of residence-based IHT regime The Finance Act 2025 (FA 2025), which received Royal Assent on 20 March 2025, implements the abolition of the remittance basis and introduces a residence-based regime from 6 April 2025. FA 2025 makes residence, rather than domicile, the main determinant of liability to inheritance tax. changes to the rules defining excluded property status; removal of protected settlements status for offshore trusts; and modifications to overseas workday relief. For further information, see Practice Notes: The abolition of the remittance basis of taxation...

3 Agreement to surrender Summary of the Agreement between the Landlord, Tenant [and Guarantor] dated [date] for the Lease of the [Property or Surrendered Property]. It adopts the Standard Commercial Property Conditions (Third Edition—2018 Revision) with modifications. Key defined terms include Actual Completion Date, Surrender Date, Premium, Rent, Interest and VAT. On the Surrender Date, the Tenant surrenders its interest with [full or limited] title guarantee by executing the Deed of Surrender or Transfer, settling Rent to date, and yielding possession [and keys]. The Landlord accepts by executing the counterpart, taking possession [and paying any agreed Premium/Chattels Price]. Deposits, apportionments and any Rent Deposit follow the Agreement and Standard Conditions. Subject to stated carve-outs, mutual releases apply from the Actual Completion Date; any outstanding Insurance Rent and Service Charge are payable on demand. Completion mechanics, Interest on delay, and any Guarantor’s consent are as set out. Costs, Landlord and Tenant Act 1954 matters, entire agreement, severance, continuation for any Remainder, governing...

On the life tenant’s death, an inheritance tax (IHT) liability would arise pursuant to section 49 of the Inheritance Tax Act 1984 (IHTA 1984), subject to any property that was eligible for relief at that time...

In this Q&A we have assumed: the deceased’s assessment was correctly calculated a typical financial profile (not, for instance, no recourse to public funds) no top-up was due or paid no deprivation the income-based assessment was up to date Charging for a resident assessed as full cost and availing themselves of a deferred payment agreement would normally be as follows: income contribution: income minus personal allowance, per charging cycle remainder (after 12-week disregard) deferred against property Confirm the first was paid. For the second, check overcharging against beneficial interest; the lower capital limit is £14,250, not £23,250. Assessable capital = beneficial interest − 10% − £14,250 (Care and Statutory Support Guidance 8.12). Example: £200,000 interest gives £165,750. Systems may overrun, exceeding assessed capital; if so, reassess and cap recovery at that, with any surplus proceeds kept by the estate. Deprivation or unpaid income are not protected by the lower limit. If the...