I am instructed to deal with the estate of Mr F who died in September 2024. His wife, Mrs F died in 2009 and left a will which included a nil rate band discretionary trust. Mr and Mrs F owned both the leasehold and freehold interests in their property which was owned as tenants in common, however, only the leasehold interest was transferred into the trust for reasons unknown. The value of the half share of the property as at Mrs F’s date of death was £100,000.00. Cany anyone advise if it is an issue that only the leasehold interest was transferred?
I have been provided with the estate accounts from the solicitors who dealt with Mrs F’s estate. This shows various bank accounts in Mrs F’s sole name, and a net amount of circa £45k passing to Mr F.
It is not clear why the money in the Mrs F’s estate was not also transferred into the NRBDT as well and I am making enquiries in this regard to find out if a deed of appointment was prepared at the time appointing these funds outright to Mr F.
As Mr F’s estate is taxable, I need to know which transferable reliefs are available from Mrs F’s estate. As her half share of the house was transferred into the NRBDT I understand that the TRNRB isn’t available to claim. However, I am not clear to what extent any of TNRB is available to claim as she left a NRBDT in her will, albeit the full amount was not transferred into it. The NRB at the time would have been £312,000.00 but only £100,000.00 was paid into the trust. There were insufficient assets in Mrs F’s estate to fully satisfy the gift of the NRB. Is it possible to claim the unused amount in Mr F’s estate - I am not clear on this point.
Has anyone come across this scenario before and can advise how much if any of the TNRB can be claimed bearing in mind that monies were transferred directly to Mr F which should have been paid to the trust and if the transfer of the half share of the leasehold interest in the property is sufficient to constitute the transfer of the half share into trist.