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Where Taxpayers and Advisers Meet

RNRB - unmarried couples

27Spots
Posts:27
Joined:Mon Jul 04, 2016 10:37 pm
RNRB - unmarried couples

Postby 27Spots » Fri Jul 20, 2018 11:40 am

Hi
I have a situation where elderly couple are unmarried and no intention to marry. He is significantly older and therefore likely to die first. Intention is to leave house (it's solely his) on life interest trust to her. My interpretation of rules on RNRB is that because they are unmarried, his RNRB is lost, even though his children are remaindermen. Her RNRB will then also be lost because remaindermen are his children not hers. Is this correct?
Thanks in advance.

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: RNRB - unmarried couples

Postby AGoodman » Mon Jul 23, 2018 12:11 pm

Correct

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: RNRB - unmarried couples

Postby maths » Tue Jul 24, 2018 7:34 pm

Unfortunately a real problem.

1. Get married.
2. Adopt children.
3. Possibly leave sufficient of property to children to utilise the RNRB and leave other part on trust for spouse with right to reside.
4. Use 2 year discretionary will trust and unwind if surviving spouse doesn't die in the 2 year period.

None perhaps ideal.

27Spots
Posts:27
Joined:Mon Jul 04, 2016 10:37 pm

Re: RNRB - unmarried couples

Postby 27Spots » Thu Jul 26, 2018 9:29 am

Thank you, both. Indeed, no ideal solutions!


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