Hi all,
I have read many posts about the availability (or lack of) of RNRB where Asst Protection trusts are concerned.
However, I have come across one where on the death of the surviving Settlor (dad), the Property passes according to “…the will of the surviving Settlor”. The Will passes everything to the daughter.
Does that change the view? Is it still classed as ‘closely inherited’? HMRC seem to think so - but I get the feeling they just want me off the 'phone.
Also, the GROB will be his half (His wife died many years ago and used up her own NRB with her GROB as the Trust was created more than 7 years prior to her death).
However, it appears that I also need to complete IHT418 (Assets Held In Trust). As the wife has died, should this now be the full value of the house?
HMRC seem to think I should only include the Wife’s half in the IHT418. Surely, he had an interest in the whole property and so the whole value should be included?
I plan on putting a full explanation on the IHT400 to cover myself/the executors - but I just wanted some help to get my head around it.
The total value of the house if £550,000 (current) and at the date of transfer was £400,000 (2013).
Thanks