TRNRB availability

Trusts Discussion
1

Hello. I have an estate whereby wife died several years ago leaving her entire estate to surviving spouse. Husband has recently passed. Husband leaves a cash legacy of £140,000 to a discretionary trust. The residue passes to his 2 sons.

There is sufficient cash in the estate to satisfy the legacy without the home needing to be sold. The home forms part of the residue.

Just wanted to double check that the existence of the discretionary trust does not effect the availability of the H’s RNRB?

I also believe NRB ( and TNRB) is still available in these circumstances?

The property (which is unregistered (with missing deeds!!)) appears to have always been in the sole name of H. Does this mean that we cannot claim the TRNRB for wife?

I should be grateful for any responses regarding this.

2

The fact that W did not own a property means that no part of her RNRB was used and hence is transferable to H’s estate (ie H’s estate potentially eligible for a RNRB in aggregate of 350k).

H, on death, owned a qualifying residential interest and hence in principle his estate is eligible for an RNRB. There is no requirement for H’s residence to be explicitly mentioned in H’s will and may be included as part of residue. Residue must go to lineal descendants.

In short, RNRB available on H’s death which can include a transfer of W’s RNRB.

Malcolm Finney