Legacy Gift of RNRB

Does anyone have a precedent for a client who wishes to gift a sum of the equity in their property equal to the RNRB at the date of their death to a child.

Rachel Stafford

Unsure if this is exactly what you are looking for, but my wife and I made Wills in 1996 which on the first death gift ‘up to the nil rate band allowance’ in Trust to our children. However, we recently added a Codicil to clarify that the Trustees may accept and IOU from the survivor for that nil rate sum to be loaned to them instead of gifting it into Trust, such loan to be repaid from the survivors estate on their death. The codicil was added as clarification of the original intent and to make sure that the authority did exist for this change if requested by the survivor.

This may possibly be a solution and would avoid the Trustees having to deal with investing capital in the Trust and in fact they would have nothing to do until the second death when the loan would be repaid to the Trust for distribution to beneficiaries. In our case our two adult children and ourselves are Trustees.