RNRB and Discretionary trusts

The husband died last year . There was a NRB discretionary trust in the will. The solicitors dealing have placed one half share of the house in a discretionary trust. (the value of the whole house was 700K). The residue of 100K passed tot he wife.

The wife has half share of the house £325K and a further 400K

She isn’t very well and it is hoped she will survive for the next year or so.

Assuming that she survives until April 2017. Will she be able to use her husband’s RNRN as well as her own. I understand that HMRC don’t recognise a NRB DT but she owns a part share of the home in her own right and she is leaving it to her children.

I assume that if this is possible the amount claimed cannot exceed the value of the share of the property.

Any assistance would be appreciated

Collette Hodkinson

CPH Solicitors

If the client survives past 5.4.17, she will in that first tax year have RNRB of (£100K + £100K = £200K) because the husband of course did not/could not use his. The value of the two RNRBs is well within the value of her share of the property, she can use all the available RNRB against her estate. This would continue to be true for the following tax year as well (RNRB x 2 = £250K), and the next one (RNRB x 2 = £300K).

Jill MacMahon
Thackray Williams LLP

The Widow’s executors can claim her and her husband’s RNRB against her share of the house, and the maximum claim will be the value of her share.

Simon Northcott