RNRB and Disabled Beneficiary

(Victoria Armour) #1

I have a married couple who currently have assets around £1m and will likely inherit from parents in the future. They have two minor children, one of whom is disabled. They would like to leave their entire estate to the children in their Will but at this stage do not know what long term needs their disabled child will have. As I understand it, if they put the money in a straight forward discretionary trust their estate will not have the benefit of the RNRB. If they have a trust for a disabled beneficiary, that will benefit from the RNRB. However, can I include the other son as a potential beneficiary of the disabled person trust? Any guidance on the best way to handle this would be much appreciated.

Victoria Armour
VP Legal Solicitors

(Malcolm Finney) #2

I am not familiar with disabled persons trusts but does not IHTA 1984 s89C deal with your query, in particular s89C(1)(a) and (2)?

Malcolm Finney