Q&As

Would the residence nil rate band be available where an individual’s Will contains a nil rate band discretionary trust and a gift of the residuary estate to their children and where there is a qualifying residential property interest within the estate as well as cash exceeding the basic nil rate band threshold?

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Published on LexisPSL on 09/08/2019

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

  • Would the residence nil rate band be available where an individual’s Will contains a nil rate band discretionary trust and a gift of the residuary estate to their children and where there is a qualifying residential property interest within the estate as well as cash exceeding the basic nil rate band threshold?

Would the residence nil rate band be available where an individual’s Will contains a nil rate band discretionary trust and a gift of the residuary estate to their children and where there is a qualifying residential property interest within the estate as well as cash exceeding the basic nil rate band threshold?

For general information on the residence nil rate band (RNRB), see Practice Note: IHT—residence nil rate band.

The RNRB is available to be set against a deceased individual’s whole estate up to the value of a qualifying residential property interest (QRI) passing to qualifying beneficiaries. The RNRB is only available where a QRI is ‘closely inherited’ on the deceased’s death, meaning that it passes to defined lineal descendants.

The availability of the RNRB will depend on the precise wording in the Will as this will affect the calculation of the amount passing into the nil rate band discretionary trust (NRBDT), including whether or not there is a transferable nil rate band (NRB) being

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