NRB Discretionary Trust by Deed of Variation

[Peter D]

Is there anthing the stops a deed of variation from putting a NRB Discretionary Trust in place for a deceased person. The house was in joint names and the husband passed away 5 months after the Wife. The father had a NRB DT in his name but not in the wifes ( died first ) at present the the IHT excess is 25K. The wifes moveable was only 20K and the property value was £250K. Any help appreciated as this is moving very quickly and IR have already issued an IHT liability statement unquestioned by the solicitor, clearly not pro-active. Regards Peter

[Simon Sweetman]

As I understand it you cannot now do a deed of variation for the first death because the chief beneficiary is no longer in a position to consent - I believe there was a Special Commissioners decision fairly recently.

[Peter D]

Simon can you direct me to this decision, Thanks Peter

[Peter D]

And does it apply in Scotland ?? Regards Peter

[Peter D]

http://www.kessler.co.uk/archive/msg00658.html
this refers but is dated 2002. I can find any ruling against this in the CTO Manual. Regards Peter

[King_Maker]

Why cannot the Executors/Administrators be party to the first death DoV?

[Peter D]

This sound promising King_Maker tell me more. Regards Peter

[King_Maker]

Peter D,

Not much I can add without further research.

I was dealing with a Scottish Estate a few years back, and ran various scenarios by the CTO who were very helpful, if I recall. I then briefed the Scottish solicitor who drew up the DoV.

Bottom line - my client got more money and I got a bigger fee. :)

[Peter D]

Excellent King_Maker. Thank you. Regards Peter