I am after a solution to a problem that arises when a couple own unequal shares of the marital home & differing amounts of personal assets.
The couple each have children from a previous marriage and wish to create life interest trust over the property with the residue going direct to their children. The effect is that the husband’s NRB would be fully used on first death but the wife’s would not. In fact the wife’s entire assets are valued under £500,000.
The apportionment of the RNRBs & NRB on second death between the free estate and the trust has the effect of causing the wife’s estate to pay tax in excess of £70,000 or £30,000 depending on the order of deaths.
They (and I) consider this unfair and I am wondering whether it is possible to insert a clause in the Wills which has the effect of redressing the balance?
Any guidance or ideas would be greatly appreciated.
Thomas Simpson Solicitors