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Where Taxpayers and Advisers Meet

Trust nil rate bands

Rows Mum
Posts:12
Joined:Thu Oct 18, 2012 5:39 pm
Trust nil rate bands

Postby Rows Mum » Wed Jul 06, 2016 10:34 am

Hi there. I have a client who established a relevant property trust in 2003, and a second one in 2012. He died in 2015. In terms of his Will, made in 2004, part of his estate is to pass to the 2003 Trust. The 2012 trust gift reduced the nil rate band available on death. To complicate matters, there was a third trust, established in 2005, by my client, in which he had a life interest. In terms of the purposes of the 2005 Trust, the trust came to an end on my client's death, but a portion of the trust funds then fell to be held on discretionary trust terms, so that effectively, a new trust was created as a consequence of the death. For IHT reporting purposes going forward, I'm trying to establish the nil rate band position for each of the 3 trusts, but am getting tied in knots. The 2003 trust will previously have had a full nil rate band. thank you in advance.

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