RNRB and TRNRB - blended families- direct descendant

Trusts Discussion
1

Good evening,

I have researched this question however, cannot find a definitive answer and wonder if anyone is able to guide me.

I am dealing with an estate where value is £877,000

  • Spouse died in 1991

  • 11 beneficiaries 1 stepchild, 9 step grandchildren and 1 friend

  • deceased’s property value £180,000

Am I correct in applying the following reliefs?

Deceased’s NRB £325,000
Predeceased Spouse’s TNRB £325,000
Deceased’s RNRB £47,800 (due to the only qualifying descendant being 1 stepchild)

Am I also able to utilise the predeceased’s RNRB in full? Or would this be the same amount as the now deceased’s £47,800?

Thank you in advance.
Carmen Cottingham

2

A step-child of the deceased falls within “closely inherited” [IHTA 1984 s8K(3)] wrt the Residence Nil Rate Band.

Is it not also the case that a lineal descendant of a step-child (eg a step grandchild) also so qualifies under s8K(8) ?

If so, do you not have 10 individuals who may closely inherit?

Malcolm Finney