My client is a widow. Her husband died in 2005 leaving a Will which set up a NRB discretionary trust on his death. The beneficiaries are my client their three children and any future grandchildren.
No action was taken by my client at the time of her husband’s passing with regard to the will and or trust, ie: appointment out or deed of variation. In light of the change in law in 2007 re NRB being transferable between spouses, I understand that on the death of my client, if no action is still not taken, then her estate will not be able to claim the transferable NRB of her late husband as it was effectively ‘used up’ by the trust.
I am trying to explore the best way to prevent this from happening. While I understand that a Deed of Variation now would be unhelpful re IHT as it’s outside of 2 years, however, will a Deed of Appointment appointing the trust fund in favour of my client (and dissolving the trust) mean that the transferable NRB would become claimable on the death of my client?
Or, is there a better alternative for my client?
Many thanks in advance.