Q&As

What documentation is required when an equitable charge over a share in real property, which was created as part of the constitution of a nil rate band discretionary trust on the first spouse’s death, is repaid to the trust following the surviving spouse’s death?

read titleRead full title
Produced in partnership with Graham Stott of gunnercooke LLP
Published on LexisPSL on 03/06/2019

The following Wills & Probate Q&A produced in partnership with Graham Stott of gunnercooke LLP provides comprehensive and up to date legal information covering:

  • What documentation is required when an equitable charge over a share in real property, which was created as part of the constitution of a nil rate band discretionary trust on the first spouse’s death, is repaid to the trust following the surviving spouse’s death?

What documentation is required when an equitable charge over a share in real property, which was created as part of the constitution of a nil rate band discretionary trust on the first spouse’s death, is repaid to the trust following the surviving spouse’s death?

Prior to the introduction of the transferable nil rate band (TNRB) on 9 October 2007, it was common inheritance tax (IHT) planning to utilise the nil rate band (NRB) of the first spouse to die by way of a Will trust, both so that the NRB of the first spouse to die was not wasted, as well as to provide the surviving spouse with a degree of flexibility on the first death.

Often, the liquid assets in the estate were insufficient to satisfy the nil rate sum with the largest asset in the estate being the matrimonial home which the surviving spouse wished to continue to occupy as their home.

With the share of the matrimonial home belonging to the first spouse to die in the trust fund, if the surviving spouse was permitted by the trustees to continue to simply occupy the property, it was arguable that the surviving spouse acquired an interest in possession so that the value of the trust fund

Related documents:

Popular documents