Dear All,
I am preparing mirror life interest trust wills for the benefit of the surviving spouse to reside in the family home for life.
What I wanted to know was is it is possible to have an express term for the advancement of capital and income for either the life tenant or the beneficiaries (the children) and if so would there be any tax implications of doing so?
Would this affect the NRB or the RNRB?
Thank you in advance.
Regards,
Sunny
Yes, in relation to capital, although the statutory power of advancement would already apply in relation to the children unless you wanted to be able to do this without the consent of the life tenant.
You wouldn’t expect to have a discretionary power over income if the life tenant has an IIP.
I can’t think of any tax implications to the mere existence of a power to advance capital. In fact I would have thought it more common to include them than not, particularly when the life tenant is the parent of the children (rather than a step-parent).