DT & RNRB & appointment

Any help appreciated.

I have an estate whereby the estate is left to a Lifetime Discretionary Trust. The DT was set up on the same date that the will was signed (3 years prior to death) and has £10 attached to it. No assets have been transferred to it (other than the £10) and I am informed it was created purely to receive the estate upon passing.

Am I correct in thinking that we are unable to appoint the property out to the children and secure the RNRB? Or is there some rule that the lifetime DT only really kicks in on death and we can somehow use s.144?

I’m struggling to understand the reasoning of not incorporating the DT within the will.

thanks

s144 can apply because the settled property was comprised in his death estate and “is settled by his will”. The commencement date of the settlement will nonetheless be the date the £10 was added under s48A. That’s why I do not put any funds in my pilot trusts so that the commencement date is when the executors release the settled funds to the trustees. It also means that this triggers TRS.

Jack Harper

Thanks Jack. So does the 2 years start from date of death rather than the date of the settlement (when the £10 was added)?

s144(1) says the relevant event must occur “within the period of two years after his death”.

Jack Harper