Q&As

Where a person dies leaving 75% of their estate to their spouse outright and 25% to their spouse on a life interest trust and then to their children, when claiming the transferable nil rate band (TNRB) from the first to die, would you be able to claim 75% or 100% of the TNRB?

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Published on LexisPSL on 11/05/2018

The following Private Client Q&A provides comprehensive and up to date legal information covering:

  • Where a person dies leaving 75% of their estate to their spouse outright and 25% to their spouse on a life interest trust and then to their children, when claiming the transferable nil rate band (TNRB) from the first to die, would you be able to claim 75% or 100% of the TNRB?
  • How to calculate the transferable nil rate band (TNRB)
  • Step 1: Identify the NRB used on the first death
  • Step 2: Calculate the amount of unused NRB on the first death as a percentage of the total NRB on the first death
  • Steps 3 and 4:

Where a person dies leaving 75% of their estate to their spouse outright and 25% to their spouse on a life interest trust and then to their children, when claiming the transferable nil rate band (TNRB) from the first to die, would you be able to claim 75% or 100% of the TNRB?

For the purposes of this Q&A, we have assumed that this Q&A is referring to a scenario in which the first spouse to die had not made any lifetime transfers and did not leave any other chargeable legacies such that their full nil rate band (NRB) was available on death. We also assume that both spouses are domiciled within the UK such that there is no restriction on the availability of the spouse exemption.

How to calculate the transferable nil rate band (TNRB)

To calculate the amount of TNRB available to the survivor’s estate:

  1. first, identify the amount of the NRB used on the first death:

    1. if the entire NRB was used on the first death, there is nothing available to transfer to the survivor’s

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