I am preparing wills for a married couple. Both are widowed and have TNRBs from their deceased spouses. Both have adult children from their first marriage. They want to make provision for the surviving spouse but ensure ultimately that their assets are divided equally between their respective children.
Their total estate is worth around £1.45 million and consists of the matrimonial home (£800k), three other properties (£550k) and cash (£100k).
I have advised a flexible IIP trust of residue on first death and also a DT of the UTNRB. Given the values, would it be advisable for the DT on the first death to be of both the testator’s UTNRB from his/her late spouse and his/her own NRB, even though that leaves very little to go into the IIP trust? Would you advise including the usual debt/charge administrative provisions in the Will so that the DT can be funded with a charge on the matrimonial home if necessary? The precedent I have seen on Lexis Nexis doesn’t include them but it can’t be uncommon to fund the DT in this way.
Do you have any thoughts on how best to explain the structure of the wills to my clients? Following a short career break, I am finding this challenging to understand myself, let alone explain to my clients!
Mary Collyer
Norton Peskett