I have been instructed in the administration of an estate whereby the residue is left to the deceaseds grandchildren upon attaining the age of 20, (ages from 18-14)
Is there anything which can be done to qualify for the rnrb?
If s.31 Trustee Act 1925 applies, the grandchildren will acquire an interest in possession on attaining age 18.
The entitlement of those who attained that age before the testator’s death will therefore qualify as “closely inherited” for the purposes of RNRB.
In respect of those who attain age 18 before the second anniversary of the testator’s death, s.144 IHTA 1984 will apply so that their entitlement will become “closely inherited” for the purposes of RNRB.
In respect of any grandchild who attains 18 on or after the second anniversary of the testator’s death, RNRB will not be available unless the trustees exercise their discretion under s.32 Trustee Act 1925. However, would that be appropriate mindful of the wider circumstances, including the possibility that the maximum amount of RNRB might already have been claimed in respect of the other grandchildren?
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
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