Deed of Appointment to deceased survivor

Trusts Discussion
1

I have an estate where husband and wife died 2 days apart.

The first to die had a NRBDT. His only asset was a share in the property.

I need to appoint this out to obtain both full RNRB for both estates.

Would a Deed of Appointment to wife be acceptable to HMRC if she is now also deceased?

2

I think it goes without saying that you can’t make an appointment to a dead person. Furthermore, I do not think the reading back that occurs under s.144 IHTA 1984 changes that, especially as the reading back relies on the ‘event’ already having occurred. In this case, the ‘event’ would be the appointment, and no event would have occurred as an appointment to someone who is not alive is clearly a nullity.

3

I would agree that you can’t appoint to a dead person, but if I remember rightly, it is possible to do a double deed of variation in this sort of situation, and potentially redirect to the survivor that way. Why doesn’t the TRNRB work in your situation?
Alexander Learmonth KC?

4

If the sole purpose is to claim both RNRB’s and if this is a situation where the whole estate will ultimately pass to the child/ren of the deceased couple, then another option might be to appoint the NRBDT of the first to die to the child/ren. The RNRB would then be available on that estate, provided the appointment is made within 2 years of the first death.

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