Immediate Post Death Interest (IPDI) trust - Advice

[bad company]

There was a piece in my newspaper discussing these trusts which sounds interesting. I know very little about trusts but wonder about the advantages & possible pitfalls.

I have a son by a previous marriage living in the USA and obviously want to leave money to him as well as Mrs BC. What concerns me is if I go first my will leaves half of my assets equally to my son and Mrs BC. Fair enough but then when she goes she’ll probably leave the money to her relatives.

If I have this right if I put my house (owned by me alone) in trust to Mrs BC she can live in it without paying IHT until she dies, then it’d become part of my estate.

Do I have that right?

[simon_harris]

A mate of mine has something like this set up, his daughters inherit the house if he dies but there is provision that his wife is allowed to live there until she dies.