Commentary

I12.1117 Continuing uses for nil-rate band discretionary trusts

IHT, trusts and estates

I12.1117 Continuing uses for nil-rate band discretionary trusts

I12.1117 Continuing uses for nil-rate band discretionary trusts

In wills for married couples or civil partners, the whole elaborate structure of nil-rate band discretionary trusts is no longer needed or advisable in the majority of cases, in consequence of the introduction of nil-rate band carry-forward (see I4.161). An important point about the carry-forward rules is that if none of the first to die's nil-rate band is used, the nil-rate band at its level at the time of the survivor's death is doubled. A nil-rate band discretionary trust fund would have to grow in value by a greater percentage than the percentage increase in the nil-rate band between the first and second deaths for it to produce a better result than the carry-forward rules. It is difficult to predict at the time of making a will either the future growth of the nil-rate band or of the value of particular assets, although currently it seems clear that there will be no increases in the nil band for the foreseeable future. There are all kinds of difficulties about nil-rate band discretionary trusts, and setting them up and keeping them on the go is trouble and expense, particularly where the only significant asset is

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