Remarriage and TNRB

If A and B are married, and A subsequently dies, leaving their estate in full to B (and A passes an unused NRB);

And B then marries C, and B leaves by Will their entire estate (which includes B’s unused own full NRB) to C;

And then B dies;

Can C (as i.e. executor and sole beneficiary) by a Deed of Variation redirect an amount up to the NRB to a discretionary trust - and thereby ‘save’ the additional (A’s) NRB? So that on C’s death, he/she will still have two NRBs (i.e. B’s and C’s)?

Owen Mason
Vermeylen Law

Yes, it is possible to achieve that result under s. 142 IHTA 1984.

Paul Saunders

Yes. The extra rnrb could be used by deed of variation too.

If C may remarry best to use two nrbs on Bs death.

Simon Northcott

Dear Simon and Paul,

Thank you very much for your responses and time,

It is much appreciated – thank you,

Owen Mason
Vermeylen Law

Use of IHTA 1984 s142. would allow the redirection to which you refer.

Once there has been a TNRB this merges with the NRB to form a new NRB. On the execution by C of a redirection (under s142) of, say, £325k of C’s inheritance from B on DT then B’s unused double NRB (ie including the TNRB from A) would reduce to a single £325k NRB available for C’s PRs to claim.

The only difference between a NRB and TNRB is that the latter cannot be used against any lifetime CLT in calculating the IHT thereon.

Malcolm Finney

Dear Malcolm

Thank you very much for your response – it is much appreciated,

Owen Mason
Vermeylen Law