Residence Nil Rate Band

Trusts Discussion
1

I have a query regarding the apportionment of the Residence Nil Rate Band.

Where a deceased testator gives ‘such some or property’ up to the value of the Nil Rate Band to his Trustees (NRBDT) with 90% of his residuary estate passing to his children and 10% to charity. Does the QRI fall entirely with the residue or does it have to be apportioned between the children, charity and NRBDT?

The difference would be claiming 90% of the RNRB (if it falls within the residue) oppose to around 55% if it has to be apportionment to include the NRBDT.

Barry McDonough
Hill Dickinson LLP

2

If the residence is left in its entirety on the NRBDT then no RNRB is available.

If the residence falls entirely in residue then the RNRB is available up to the lower of the RNRB and 90% of the value of the residence.

Malcolm Finney