Nil Band rate will

[dannyboy44]

If a mirror will using the nil band rate is implemented incorporating a discreaionry trust can this be changed or disolve during the life time of both parties.
Regards Glenn

[Peter D]

The Discretionary Trust is not put in place until the first spouse passes away. May I ask why you are asking this question, I may be able to help. Regards Peter

[dannyboy44]

Hello Peter,

My concerns are that I currently have a main residence and a second property that I inherrited in July 1995. Main residence currently in my name but am looking at changing this to tennants in common with my wife. Second property in my name and currently being rented. Due to my ill health statitically my wife should survive me. There may be a possibilty that the second property be sold to property developers who my be interested in the not to distant future, sell now would render me a huge CGT bill whereas selling to develpers would help towards CGT liability. If the property was not sold then on my death this would pass onto my wife to sell (no CGT). monies invested into trust.

My solicitor is insisting that I have both properties in tennantsin common on 50/50 basis.

i feel this would be inflexible in that should I die before my wife then 50% of the main residence could be tied up in trust and should she wish to sell and she may need "permisson" from the trusties.

have tried to provide as much information to help address the issue.

Regards
Glenn

[Peter D]

Glen, Email me at Peter@3DAssociates.co.uk and I will email you an artical I wrote last year that may help you to understand your situation then you can ask questions. Youe solicitor may well be right. Also detail on the forum the aquistion and potential disposal values of the secong property that I assume you have not lived in at any time, and the value of your PPR. Regards Peter

[maths]

Your solicitors cannot insist on you/your wife holding any property as tenants in common.

However, it normally is the "best" way to hold from an IHT perspective.

Nevertheless, if you simply want your interest to pass to your wife automatically on your death (without trust implications) irrespective of tax considerations, then insist on a beneficial joint tenancy.

[Wealth Protector]

It would be useful to know what the detailed figures involved are here Glenn since it is entirely possible to wrap everything up in such a way that you can do what you like with the assets during your lifetime, with immediate effect, safe in the knowledge that your spouse and family and their issue thereafter can also enjoy the value of those assets totally tax free in perpetuity - by all measn contact me to talk this through.

Rex Ashcroft
Director
Wealth Protection International Limited
info@wealthprotect.co.uk
+44 1263 821906

[atatum]

Glen I can see your problem, however a decently written Nil Rate Band Descretionary Trust Will, should have the power to allow an IOU to be raised. Where by your wife could borrow all of the money from the trust, with the trustees agreement and spend it as she wished. When she dies the IOU is repayable if she has the money, hance saving the NRB.
You should also look at something like a revocable lifetime interest trust, where on your death assets over the NIl Rate band are put into this separate trust but you give you wife a life interest in the trust, later in her life when she is no longer in need of the asset(s) this interest can be revoked and subject to the seven year rule might help avoid additional IHT.
if you need more help either give us a ring or email us, you will find deatils or our website www.nls-bucks.com
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