Residuary Gift - Asset Protection Trust Fund

We are acting in a matter where:

A couple made Wills in 2012 incorporating a residuary gift - asset protection trust fund. In each Will the income of the trust fund was to be paid to the surviving spouse during their lifetime.

The wife died in 2017. The Estate was left unadministered and all of the wife’s assets passed to the husband.

The husband died in April 2020. Can the husband’s estate claim to transfer the unused nil rate band?

Thank you in advance for your advice.

Kind regards

Hannah Michaelis
Sinclairs Solicitors

On the bare facts stated, there seems no reason to anticipate that the husband’s estate might not to be entitled to claim a transfer of his late wife’s unused NRB. The fact her estate is “unadministered” should not impact that.

However, it may be an accounting nightmare to untangle the two estates if the husband had deal with his late wife’s assets as his own instead of them being dealt with in accordance with her will.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals