I have a query relating to the residence nil rate band.
I have a client who wants to leave a contingent gift of residue to her daughter upon her attaining the age of 25 - there will be an IHT liability on her death. Obviously, if the testatrix was to die before the daughter attained the age of 25 the RNRB would not be available. However, if a flexible IPDI was drafted naming the daughter as the life tenant but have provisions in the Will for the Trustees to forward capital to the daughter (with a memorandum of wishes that the whole trust passes to the daughter upon her attaining the contingent age) - would the RNRB still be available?
There are other considerations of course that the memorandum of wishes is not binding and therefore the testatrix would need to carefully consider who she appoints as her trustees of the life interest trust, but she wants the contingent gift in place.
Q S Howlett Clarke