Thank you for any assistance on the following;
Husband died in 2018 having severed the property with his wife. His will left a Discretionary Trust for the Nil rate band. The trust continued to hold the half share of the property until the house was recently sold. The sale proceeds from half share was £300,000. The wife owns the other half and leaves all of her estate to her children.
Having discussed with HMRC they have said that the Transferable NRB can still be claimed for the husband as it couldn’t be claim at the date of death as there was no need and also cannot claim when you have a discretionary trust. Would members agree with this and if so is it limited to £300,000 which is the proceeds of sale from the wives half share of the property.