Residence Nil Rate Band

Trusts Discussion
1

Hi, can I just check what might seem like a fairly obvious question.

I have client who at present has in excess of £3 million estate. He is in his 90s and does not need or want the assets. He would like to bring his estate to beneath the £2 million figure to enable his Executors to access his and his late wife’s residence nil rate band.

Even though it’s unlikely he will survive more than three years , let alone seven, (so there would be tax to pay on the gifts), by bringing his estate to just under £2 million would afford his estate the additional £200,000 on current figures.

Am I missing something on this?

Any advice much appreciated.

Thanks,

Gill Collins

Warwick & Barker

2

He does not need to survive 7 years to bring his estate below the threshold for RNRB purposes, as you suggest.

Simon Northcott

1 Like
3

Quite right

This is one of the many absurdities of the RNRB legislation.

Anthony Nixon
Irwin Mitchell Private Wealth

1 Like