Will Deed of Appointment work?

Lifetime trust set up in November 2017, giving a life interest to the settlor, then to a discretionary trust. There is a Deed of Assignment assigning property to trustees. Settlor dies earlier this month.

Property value above NRB (no advise given that this is a CLT). Can a Deed of Appointment still work to give a share of the property to children to obtain the RNRB? I am thinking not as the property isn’t settled by the testators Will.

Apparently trust set up to “save probate fees”, obviously no thought given to potential IHT

Sally-Ann Joseph

Rose & Rose

A deed of appointment will not work as s144 will not apply for the reason you state.

Simon Northcott

It sounds like a trust set up to avoid care home fees (saving probate fees is window dressing). In my view they are very much oversold and it won’t be long until the claims farmers get wind of the fact there is money to be made from these. Check whether you can get ‘downsizing’ relief (a situation like this can sometimes meet the criteria) but apart from that I don’t see how this situation can be rescued from an IHT perspective.

Paul Davies