I am looking to claim the residence nil rate band in an estate but there are significant pecuniary legacies (such that there will not actually be anything left in residue to distribute). Do you need to take account of whether the pecuniary legatees are direct descendants and who are not to determine the availability of the residence nil rate band? Or is the RNRB available by virtue of the fact that the residuary legatee is a direct descendant, even though they won’t actually receive anything from residue?
I’m not sure why your post wasn’t answered.
Assuming no downsizing, then for a RNRB to be available at death the testator must have possessed a qualifying residential interest which is inherited by one or more lineal descendants of the deceased.
I have an estate where the RNRB downsizing provisions apply. There are pecuniary legacies of £25,000 to non-exempt bens, not direct descendants. Full NRB also available. On the IHT435 it talks about grossing up being required if IHT is due (it is) and the will makes tax free gifts. Am I right in thinking this applies ONLY where part of residue is exempt?