Q&As

A died and left a nil rate band discretionary trust within their Will. Their surviving spouse, B is the main residuary beneficiary to the estate. B would like the personal representatives of A's estate to constitute the nil rate band discretionary trust (NRBDT) by adding half the value of one of the couple's rental properties into the trust together with a third of the value of their other rental property, thereafter appointing out the NRBDT to their child, C. The properties were owned as tenants in common. The total value to be transferred into the NRBDT is £325,000. What are the relevant considerations? Does the transfer of the properties to the trustees attract stamp duty land tax? Is there chargeable consideration? What documentation would be required to transfer the property from the NRBDT to C?

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Published on LexisPSL on 24/09/2020

The following Wills & Probate Q&A provides comprehensive and up to date legal information covering:

  • A died and left a nil rate band discretionary trust within their Will. Their surviving spouse, B is the main residuary beneficiary to the estate. B would like the personal representatives of A's estate to constitute the nil rate band discretionary trust (NRBDT) by adding half the value of one of the couple's rental properties into the trust together with a third of the value of their other rental property, thereafter appointing out the NRBDT to their child, C. The properties were owned as tenants in common. The total value to be transferred into the NRBDT is £325,000. What are the relevant considerations? Does the transfer of the properties to the trustees attract stamp duty land tax? Is there chargeable consideration? What documentation would be required to transfer the property from the NRBDT to C?

It is not clear what is the background to the ownership of the two properties nor whether it is proposed that the full value of A's interests in the two properties be transferred to the trustees of the nil rate band discretionary trust (NRBDT).

The personal representatives (PRs) of A's estate must use the appropriate formalities, depending on the nature of the property concerned, to vest the title

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