Beneficiary proposes DoV to create NRB Trust.

[John-the-pilot]

I have just posted, on the IHT part of the forum, under the title:

Lots of Money and Beneficiaries - DoV to NRB Trust?

giving details of the estate.

The major beneficiary of an estate, for which I am the sole executor, has proposed the creation of a Nil Rate Band Trust using a Deed of Variation. The idea is to direct the wealth in the direction of his heirs and skip a generation of IHT.

I understand the concept of a NRB discretionary trust - by being below the starting point for IHT it avoids the IHT charge on funds going into the trust and it avoids the regular 6 year charge of IHT on its value, however it is subject to 50% income tax on any income over £1,500 a year .................

Though I would not want to be a trustee of this proposed trust, are there any pitfalls with the idea that I should point out to the pension age beneficiary?
For example could he be one of the trustees and avoid the sanctions of creating a settlor interest trust as the legal fiction is that the trust was created by the will of the deceased?

What additional mechanisms do I need to consider:
Would it be my responsibility to inform HMRC about the DoV?
Or do I just convince myself that the funds now go to the "XYZ Trust" and make out a cheque accordingly?

Though the situation is one of probate and IHT minimisation, I think my main concern is about post death CGT owing following the sale of a property.

Any advice from experienced posters on this part of the forum would be most welcome.