Residence Nil Rate Band Discretionary Trust within the Will

£520.00
Save {}Sold out

Description

A Residence Nil Rate Band Discretionary Trust within the Will establishes a Residence Nil Rate Band Discretionary Trust within the Will, serving as a specific type of trust created by a married couple to mitigate inheritance tax (IHT) liability on their estate. It is alternatively referred to as an RNRB Discretionary Trust. The Residence Nil Rate Band (RNRB) offers an additional allowance of £175,000 for cases where a person's primary residence is bequeathed to direct descendants. Initiated within the Will, the Residence Nil Rate Band Discretionary Trust is activated upon the initial spouse's demise. The testament stipulates the settlement of RNRB into a discretionary trust, designating the surviving spouse and children as potential beneficiaries. The trustees are granted discretionary authority to distribute the trust assets. This trust's primary advantage lies in its ability to diminish IHT liability on the estate. Through the settlement of RNRB into a discretionary trust, the assets exit the estate, rendering them exempt from IHT. Furthermore, the discretionary framework empowers trustees to allocate assets in a tax-efficient manner.