WillPack

Flexible Life Interest Trusts and the Residential Nil Rate Band

house, blue, flit, rnrb, hand, hold, will, trust, iht, tax,

Ever since the Residential Nil Rate Band (RNRB) was announced, one of our most common queries has been how it relates to Flexible Life Interest Trusts (FLITs). What are FLITs FLITs are essentially a life interest for a person (usually the surviving spouse), with an underlying discretionary trust that will arise when the surviving spouse … Read moreFlexible Life Interest Trusts and the Residential Nil Rate Band

Transferring and Tapering the Residential Nil Rate Band

RNRB

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, … Read moreTransferring and Tapering the Residential Nil Rate Band

Survivorship Clauses and Commorientes

clouds, sky, blue, white, logo, text, willpack,

Survivorship clauses between spouses will often include provisions so that the survivorship period will not apply if they both die in circumstances where it is uncertain who survived the other, for example in a plane crash. The reasons for this inclusion is a very specific inheritance tax advantage where spouses die together, and it cannot … Read moreSurvivorship Clauses and Commorientes

Discretionary Trusts

Discretionary Trusts, WillPack, House, Money, Table

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 … Read moreDiscretionary Trusts

Residential Nil Rate Band – Qualifying Residential Interest

Residential Nil Rate Band – Qualifying Residential Interest The rules for the Residential Nil Rate Band (RNRB) introduce a variety of new terms that need defining. The first of these is a Qualifying Residential Interest. The new S8H Inheritance Tax Act 1984 defines a Qualifying Residential Interest (QRI) as an interest in a dwelling which … Read moreResidential Nil Rate Band – Qualifying Residential Interest