(Another!) RNRB Query

Trusts Discussion
1

I am currently preparing Wills for a married couple.

Both have been married before. Both have children from that previous relationship. They do not have any children together.

The property is in the wife’s sole name. The couple accept that most of the assets should pass to the wife’s children, as she brought most of the assets to the marriage.

She wishes to leave the property so that 50% passes to her children on her death and the other 50% is held for her husband, until such time as he dies or sells the property, whichever the soonest and, thereafter, to her children.

The husband’s Will leaves his assets to his children.

I am not sure if I am over (or under!) thinking this but, what I am trying to establish is whether the wife’s estate will benefit from the husband’s RNRB, despite the fact that he does not own a property.

Any guidance would be greatly appreciated.

Kind regards.

Martyn Dixon
Harold Bell Infields & Co

2

If the husband is given and immediate post death interest in the 50% share of the property then for IHT purposes he would be deemed to own that share and as it would pass to his wife’s children on his death, RNRB should be available. If the property is sold in his lifetime then the trust would come to an end and he would be treated as having made a lifetime transfer to her children and would need to survive seven years for its value to fall out of any charge against his estate.

Patrick Moroney