Transferring and Tapering the Residential Nil Rate Band

Transferring and Tapering the Residential Nil Rate Band

By | RNRB | No Comments

Transferable RNRB Any unused Residential Nil Rate Band (RNRB) is available to be transferred to a surviving spouse as long as second death occurs on or after 6th April 2017. On second death, the surviving spouse’s Personal Representatives (PRs) are able to claim both the deceased’s RNRB and the unused RNRB of their late spouse, similar to the procedure used for claiming the transferable Nil Rate Band. This applies even if first death occurred before 6th April 2017. The first to die would not have used any of their RNRB, so 100% of their RNRB will be available to be transferred (unless their estate exceeded the Taper Threshold and some RNRB is tapered away). Whether the first to die owned a qualifying residential interest on their death is irrelevent for the purposes of transferring the RNRB. All that matters is whether the deceased spouse used it or not. Please note…

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Discretionary Trusts, WillPack, House, Money, Table

Discretionary Trusts

By | Property, Trustees, Trusts | No Comments

The Discretionary Trust is a common Trust for a Testator to use for their children to ensure that they do not inherit directly from their estate. The reasons for this can vary, for example, protecting assets from potential divorce, drinking or gambling issues, or the testators may wish that their assets are distributed in a particular manner or at certain points in their children’s lives that are outside the capabilities of the Will itself. This type of trust is effective because the assets are held and managed by the Trustees to distribute to the beneficiaries at their own discretion, hence the name of the trust and just because a beneficiary is named under the trust does not mean that they are absolutely entitled to any assets – useful where the Trustees may have concerns over how the money may be used.  Where beneficiaries are named under the Trust; this can…

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