A Will contains a gift of the nil rate sum to a Settlement set up in the deceased’s lifetime which contains £10. Residue is left to the surviving spouse. I know that usually the nil rate sum can be appointed out to the surviving spouse by deed of appointment if executed between 3 months and 2 years following the death, when there is a normal legacy of the nil rate sum. Does the same apply when the legacy is to a settlement already in existence when the testator dies? ie can the trustees of the Settlement appoint the £325,000 to the surviving spouse (she is a beneficiary in the Settlement) thereby preserving the deceased’s nil rate band?