Lifetime settlement, RNRB & GRoB

Trusts Discussion
1

H&W settled home to seperate mixed “Probate Protection Trust” (PPT) in Oct 2020. Mixed as up to NRB in PPT with DT benefs (settlor, spouse, children etc) excess on Bare Trust for each settlor (irrelevant in this case as under NRB).

H died May 2021. IHT submitted in Hs estate showing GRoB re: home @ £225K.
Hs TNRB = £100K to Ws estate.

W has died and I am instructed to prepare IHT 400. Ws NRB/TNRB now = £425K.

Ws IHT 400 to show 1/2 home as GRoB (now £265K).

Seems to me no RNRB/TNRB available. Downsizing not possible.

Ws estate = £775K so approx. £124K IHT due

Other half of property outside Ws estate but RPT.

Am I on the right path here? Thoughts if not, or confirmation if I am, greatly appreciated as always.

2

I think you are right. The only residence of W appears to be in a GROB trust. This means that under s.8J(6) the GROB property is not inherited by anyone as the gift was not direct but into trust. Nor is there a downsizing allowance because a GROB gift is not the right kind of disposal: s.8H(4D)(a).

Jack Harper