Appointment after Assets placed into NRBDT (Read back to Will if within 2 years?)

(Karl Taylor) #1

W died less than two years ago. Her Will created a NRBDT. Ws half share of the property has been placed in the names of Trustee (usual restriction etc) so (some) of the NRBDT is constituted in that sense. If the restriction etc on the property is removed so that Ws share passes to H (so he is the sole owner), can this still be read back to the Will if completed within two years of Ws death? Or, is the ‘reading back’ lost as the NRBDT has been constituted and would therefore just be an appointment from the Trust?

This is to to do with regaining the TNRB and RNRB.

Thanks in advance

Karl Taylor
Parker Rhodes Hickmotts

(Paul Saunders) #2

S.144 IHTA will enable it to be read back for IHT, but there will still
be a CGT disposal as the appointment has been made by the trustees.
However this may qualify for relief under s.225 TCGA 1992 or, if not,
any gain could be held over

Paul Saunders

(Karl Taylor) #3

That’s what I thought. Thanks Paul

Karl Taylor
Parker Rhodes Hickmotts

(Simon James Northcott) #4

I do not believe the gain can be held over if the appointment is made within 2 years after the death, as there is no IHT charge. That is why it is always best to make the appointment before the estate is ascertained for
CGT and before the trust is constituted.

Simon Northcott

(Karl Taylor) #5

I agree re prompt appointment. This case is not one I’m involved with, new Wills for H by someone I know. There was confusion from H about his wife’s estate (he thought it all passed to him). Anyway, W died almost two years ago so more to do with rectifying the matter to be read-back for Hs estate.

Thanks again all

Karl Taylor
Parker Rhodes Hickmotts