I have a Will that says ‘I give the maximum sum I can give to … without any inheritance tax being paid’ and the balance to charities.
There are two nil rate bands. There is a property.
The children are step children which I believe are included in the rules.
Could I appoint out the property to the step children thereby enabling us to use the two nil rate bands and the residential nil rate band (just one) so the gift is currently £ 650,000 + £ 175,000 (which includes the property).
I await your comments and thank you in advance.
Lisa
On the basis that the gift to the step children is a nil rate band legacy, no, the RNRB is not available regardless of whether a qualifying residential interest is appropriated in (part) satisfaction of the legacy.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals.
thanks for this Paul. I can claim the two nil rate bands as it was not used on first death. So the gift to the step children is the two nil rate bands? Yes?
A s.142 variation could give an andditional gift of an interest in the property of an amount sufficient to attract the RNRB and even TRNRB but that would reduce the value of residue. While a friend or family member who was the residuary legatee might give the necessary agreement charities will not as they are notoriously in such circumstances constitutionally uncharitable.