I am sure that I may have asked this before, but if I am completing an IHT form and the deceased’s spouse’s Will contain a NRB D/Trust, which was disbanded within two years of death. Is there any reason why I cannot complete an IHT205 and IHT217, to have the spouse’s NRB transferred to this estate?
Many thanks.
Martyn Dixon
Harold Bell Infields & Co
There are numerous reasons, but it depends on the precise circumstances. The most common situation is where the gross estate exceeds £1m.
If you open this link:
a couple of questions immediately pop up. Also, work through the questions on pages 1 and 2.
There is a useful guidance note called IHT206 and can be found here:
which goes into more detail about when not to use the IHT205.
Paul Davidoff
New Quadrant Partners Ltd
Thank you for your reply. I meant that if the estate would otherwise qualify for an IHT205, is the fact that the deceased’s husband contained a NRB D/Trust, which was disbanded in favour of the deceased, a reason not to complete the IHT205?
Many thanks.
Martyn Dixon
Harold Bell Infields & Co
I presume that when you say that the late husband’s NRB DT was disbanded, this was in effect appointed to the surviving spouse. If that is the case then his NRB and RNRB can be transferred to his late wife’s estate.
Patrick Moroney
Thank you for your reply. Yes, it was disbanded in favour of the wife and so the full NRB and RNRB is available for the wife’s estate. This will mean that there is no IHT to pay on the wife’s estate. Can I still use the IHT205 despite the fact that the Will did not provide for 100% of the estate to pass to the spouse, albeit, that is what eventually happened?
Kind regards.
Martyn Dixon
Yes. If you refer to IHT 217 you will see that there is reference to deeds variation and similar Effective which resulted in the surviving spouse Inheriting the whole of the estate. The certificate on the form does not ask for a copy but obviously you need to hold one with a copy of the will.
Patrick Moroney