We have been asked to administer an estate where the deceased’s 2006 will contains a legacy to the trustees of a NRBT. The surviving spouse and children are reluctant to run the trust as they do not relish the administrative requirements and taxation. They do, however, welcome the protection that assets held within the trust enjoy against third party influences and financial assessments for future care needs. Is it still possible to appoint out the NRBT into a qualifying immediate post death interest trust in favour of the spouse, to terminate on her death with the children as remainder beneficiaries? If so, will this affect the availability of the TRNRB?
It has been suggested to me that this may not be the case and that the family should consider an appointment out to the spouse followed by a Deed of Variation to create the IPDI. I am concerned that this could be viewed as deliberate deprivation by the Local Authority in the future.
If the family decide to retain the trust, they prefer the use of an IOU to satisfy the NRBT. Am I correct in thinking that although this arrangement would normally be subject to SDLT, provided that the deceased’s one half share of the property is worth less than £500,000, then there will be no SDLT payable under the current moratorium? Presumably there are no issues with regard to the availability of the TNRB and TRNRB either?
The Will contains all necessary powers for the trustees to enable them to accept an IOU or charge in satisfaction of the NRB legacy.
Jobling Gowler Law Ltd