Whilst we are given no information about the family circumstances, I wonder why it is suggested to appoint out to the surviving spouse absolutely.
If it is to preserve the RNRB, etc., there might be benefit in merely exercising the power of appointment to eliminate the discretionary trust arising on their death.
This would also keep the value out of their estate when looking at care fees or other mean-tested benefits. Over time, the spouse could release their interest in parts of the trust fund to benefit the remaindermen if appropriate, which would be PETs.
I believe that the appointment could be made revocable during the lifetime of the surviving spouse without any negative implications, although I am sure that other correspondents will comment if this is not the case.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals