Availability of TNRB


(Kamlesh Samji) #1

I am advising on an estate where the Will was drafted in August 2007. However, it sets up a legacy of the Nil Rate Band (as was the case in those days) with the residue passing to charities. However, the actual wording is:

" I GIVE the largest sum (if any) which (after taking account of any relevant gifts and transactions or events occurring during my lifetime and of the other specific and pecuniary legacies given by my will or by any codicil to it and of any other property which is treated for inheritance tax purposes as part of my estate at my death though not passing under my Will) could be bequeathed by me for the benefit of any individual without giving rise to any payment of inheritance tax in consequence of such assumed legacy and such expression shall include (where the context admits) the investments and property for the time being derived from or representing such sum to such of the said A, B, C and D as shall be living at my death and if more than one in equal shares"

My feeling is that this will also include the Transferable Nil Rate Band - even though it was not around when the Will was drafted. If that is the case, the Charities will get nothing.

I am just asking for views and possible challenges (if any) the Charities may come back with once I write to them. I’m sure they won’t be happy, but do they have any grounds for challenging it?

Kamlesh Samji
KRS Estate Planning


(Simon James Northcott) #2

There has been such a case and the TNRB is included if claimed

Simon Northcott


(Simon James Northcott) #3

The case was Loring 2014 EWCA Civ 1314, a claim by the Woodland Trust which failed

Simon Northcott


(stuart.adams) #4

Take a look at Woodland Trust v Loring [2014] EWCA Civ 1314.

You have to look to the “the purposes and values which are expressed or implicit in [the] wording” of the Will in order to find the answer. It seems that the implicit purpose of the Will was to give as much as possible to A, B, C and D without incurring inheritance tax and to give the rest to charity by way of residue. In the Woodland Trust case the legacy did include the TNRB.

Stuart Adams
Mishcon de Reya LLP