I’m advising trustees following the death of their father who made a will with a NRBDT and residue to surviving spouse absolutely.
The property is worth £900k owned 50/50 as TIC. Clients are deciding whether to keep the NRBDT or appoint out either to spouse or children/grandchildren. Surviving spouse is in care and if she inherits her late husband’s entire estate, she will be very close to £2m so I am advising against appointing NRBDT to spouse.
My understanding is that if they keep the NRBDT and populate it with deceased’s share of the property up to £325k, on the second death, both the RNRB & TRNRB can be claimed provided surviving spouse owned at least £350k in her own right - is that correct?
If they keep the NRBDT, given that the surviving spouse is in care, it may be that a decision is taken to sell the house, and I believe that there may be issues with the downsizing provisions and claiming the TRNRB - I’m not sure I understand what the issue is and wonder if anyone can help me with this?