Hello everyone, hope you are all keeping well.
Could I just check whether there are any problems with advancing capital to the Life Tenant/wife out of an IPDI trust after the two year anniversary of settlor’s death. My client is adamant she wants to get rid of the Trust and her co-Trustee (also the remainder man) is happy to do so (against my advice).
This was a straightforward IPDI for wife, then absolutely to daughter.
My concern is that we are past the two year anniversary and I just wanted to check there would be no adverse tax consequences or problems transferring her husband’s full nil rate band on her death. The only asset in the trust was late husband’s half share of the matrimonial home where she is now living.
Also is it a problem that other than her there is only one other Trustee?
Many thanks in advance.