Power of appointment to wind up NRB trust for spouse

Trusts Discussion
1

I have a NRB trust will, which the trustees would like to wind up and appoint the assets to the spouse absolutely.

There is no explicit power of appointment in the Will, at least in the form that I am used to and I believe the closest will be power of advancement.

“The Trustees shall hold funds … for not more than 80 years,To apply the capital of the Trust Fund …or income for the benefit of such of my beneficiaries as the trustees think fit etc…”

Will this be sufficient to set out in the deed of appointment? STEP provisions 1st edition apply but again I cannot see anything explicit. I am happy to be proven wrong!

Once the trust is wound up, on spouse’s death we would like to be able to claim both NRBs so it’s imperative it is done properly.

Many thanks

Kirsty Cartwright
St Helens Law

2

If using this express power of advancement, a written resolution should be sufficient for both trust and (assuming the trusts are discretionary) s.144 purposes.

Andrew Goodman
Osborne Clarke LLP

3

Thank you for your reply, Andrew. Is this something you have done before and HMRC have been satisfied? Many thanks again.
Kirsty Cartwright
St Helens Law

4

Not that I recall but I can’t see any reason they would have cause or grounds to object - assuming the NRB trust is truly discretionary and the assets are advanced out absolutely it is a pretty clear application of s.144.

Andrew Goodman
Osborne Clarke