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Where Taxpayers and Advisers Meet

administering a nil rate band discretionary trust

umeshg1
Posts:48
Joined:Wed Aug 06, 2008 3:55 pm
administering a nil rate band discretionary trust

Postby umeshg1 » Sun Apr 11, 2021 10:16 am

The deceased has a left nil rate band discretionary trust in his will. The Interest income of this Trust will be for the benefit of his children

What is the procedure for operating a trust/ Do we need to set up a trust deed again OR is the Will Trust sufficient. We want to open a bank account to deposit the £325k. Will the banks want to see the sight of the Will or Trust

We see a lot of NRB trusts in will but I am trying to understand the practical ways of administrating the NRB Trust. I understand we will have to register the trust with HMRC

Many Thanks

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

Re: administering a nil rate band discretionary trust

Postby maths » Tue Apr 13, 2021 3:35 pm

Typically, the nil rate sum is held on the terms set out in the will.

If cash is to be settled, the trustees will ideally need to open a bank account in their names.

Bank will want sight of the grant of probate and the trust will need to be registered with HMRC.

Whether a discretionary trust or life interest trust for the children is preferable will depend upon the facts.

umeshg1
Posts:48
Joined:Wed Aug 06, 2008 3:55 pm

Re: administering a nil rate band discretionary trust

Postby umeshg1 » Sun Apr 18, 2021 10:08 am

Thank you for your reply


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