Carmel dies and, in her will, leaves:
- shares to her sister, Claire
- the income from the shares to her mother, Ann, for her lifetime
- a dwelling house to Claire
- a life interest in that dwelling house to Ann
- a bank account to Ann.
In this instance, two group thresholds will apply to Ann’s inheritance.
Group A threshold applies to the bank account, as this is an absolute interest.
Group B threshold applies to the income from the shares and the life interest in the dwelling house, as these are limited interests.