Residence nil rate band and flexible IIP

My clients wish to leave their estate on second death to grandchildren on reaching the age of 25. I have advised creating an IPDI for the grandchildren so the residence nil rate band is available, with the remainder interest going to the grandchildren at the age of 25. They would like the trustees to be able to release capital before the age of 25 if appropriate. Is the best way to facilitate this by including overriding powers or would the exercise, or even existence, of such powers prevent the residence nil rate band from applying?

Or you could just rely on s.32 Trustee Act 1925.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

Thank you Paul. My understanding of section 32 is that no consent would be required from anyone if capital were released as it would only be to that life tenant and therefore not prejudicing anyone else, is that correct?