In a ‘double trust’ arrangement in respect of the family home, the value of loan notes (as a trust liability) was to be taken into account in determining the value of the deceased’s estate, but the loan note liability fell to be abated in its entirety, and the loan notes (as assets) did not form part of the deceased’s estate under the gifts with reservation provisions.
Summary
In a ‘double trust’ arrangement in respect of the family home, the value of loan notes (as a trust liability) was to be taken into account in determining the value of the deceased’s estate, but the loan note liability fell to be abated in its entirety, and the loan notes (as assets) did not form part of the deceased’s estate under the gifts with reservation provisions.
Background
The deceased (GJP), who died on 31 October 2016, was the principal