avoid inheritance tax on the family home

[maths]

ctturner

In principle, yes, a DoV when exercised by a surviving spouse under which a discretionary trust is created redirecting a part of the surviving spouse's inheritance does use up part of the deceased spouse's nil rate band.

However, as i comment above, this is not necessary the case eg if an IPDI (see earlier posting) is in fact created then none of the nil rate band is used.

Unfortunately, this is a bit of a complex issue.