I have come across a matter where instead of a Deed of Variation creating a NRBDT, a Discretionary trust was established by the widow and signed the day before the DoV, with the DoV leaving 50% of the value of the house (£160,000) to the trustees of the Discretionary Trust (rather than the whole of the nil rate band which was £242,000). A loan agreement was also signed which specifically refers to £160,000.
Is it possible for assets to be left to a trust that was established after death?
If so, am I right in thinking that only the £160,000 will be a debt to the wife’s estate? The loan agreement is silent as to interest and indexation.
Therefore on wife’s death she will only have her NRB, plus RNRB, plus TNRB which will be £110,124 rather than £325,000 if no trust. Would the transferable RNRB still be available to transfer as the property not put into trust, just the some of money
Is there anything that can be done now to try and obtain the full NRB of deceased spouse?
QS Rose & Rose