NRB in both deceased Will's and not administered on 1st death

Trusts Discussion
1

H & W both had NRB Trust in their Will’s. H died in 2019 with the NRB Trust not being administered.
Full value of the property on H death £49,000 and only other assets was a joint bank account between H&W with £18,000 on deposit.

W has now died with NRB Trust still in her Will and property now valued at £55,000, other assets are £18,000 in W bank account

Beneficiaries are surviving adult sons

Beneficiaries now require probate and then would like to sell the property.

Are there any issues with the above?

Robin Morgan

2

Hi Robin,

Your concerns are centred on ignoring the NRB on first and last life?

And simply paying out the estate as this is the simplest option?

Richard
PFEP

3

I have completed IHT 205 & PA1P for both and IHT217 for 2nd death.

Intend to send all together for probate.

Hopefully then pay out to the two beneficiaries in due course.

4

You do not say how the property was held. Was it TIC or BJT? If the latter then NRB DT will not arise. There may also be a requirement for the Trust to only arise if survivor inherited residue. Was that the case? Depending on wording of W’s Will no Trust may arise in that case.

Patrick Moroney
BWL

5

The property was held as T.I.C, with the nrbt in both Wills.

6

Geraint many precedents will have the provision that the NRBDT will only operate on first death and provided the survivor inherited residue either absolutely or through a life interest. What do the provisions of the Wills you are dealing with have In this respect? If the trust does operate on the death of the husband, it would be best, if the trustees were to appoint the half share of the property to the two children, assuming no IHT liability. The estates appear small but of course there may have been failed PETs involved. With 2NRBs and two RNRBs available, hopefully, there should be no tax and IHT 205s alone should suffice.

Patrick Moroney