Wills - Property Protection Trust

Hatrick24

Apologies if this is in the wrong section.  My parents have had a letter regarding their wills.  They currently have a 'Nil Rate Band Discretionary Trust' as part of their wills but have been advised that this is no longer tax efficient, due to the new tax allowance 'residence nil rate band.' They are being advised to remove the Nil Rate Band Discretionary Trust and set up a Property Protection Trust, as the former does not qualify for the new tax relief, whereas the latter will.
Does anyone have any knowledge of these and the pros and cons of doing as they are suggesting please? 

TVAS

You are in the wrong section. You need to consult a solicitor that specialised in family trusts.

xylophone

Your parents' property is owned as Tenants-in-Common?

The suggestion is that each of them should make a new will which would grant an Immediate Post Death Interest in Possession  (IPDI Trust) to the survivor with the ultimate beneficiaries you and/or your siblings?

See https://www.thepfs.org/learning-index/articles/trusts-and-the-residence-nil-rate-band/42281

https://techzone.adviserzone.com/anon/public/iht-est-plan/Tech-guide-IIP-trust-taxation


They would consult a solicitor expert in Wills and Trusts.
https://content.step.org/step-directory

Marcon

Hatrick24 said:

Apologies if this is in the wrong section.  My parents have had a letter regarding their wills.  They currently have a 'Nil Rate Band Discretionary Trust' as part of their wills but have been advised that this is no longer tax efficient, due to the new tax allowance 'residence nil rate band.' They are being advised to remove the Nil Rate Band Discretionary Trust and set up a Property Protection Trust, as the former does not qualify for the new tax relief, whereas the latter will.
Does anyone have any knowledge of these and the pros and cons of doing as they are suggesting please? 

There's plenty of stuff on the internet (some of it intelligible!) explaining more about these. If you google on your question, you'll get lots of links and you can then read a couple of articles and see whether that clarifies things for you e.g. https://www.gov.uk/government/publications/nil-rate-band-discretionary-trusts/practice-guide-70-nil-rate-band-discretionary-trusts, or  https://www.mckenzielaw.co.uk/wills-probate/nil-rate-band-discretionary-trust-wills/ or https://www.battens.co.uk/news-events/news/my-will-has-a-nil-rate-band-discretionary-trust-in-it-should-i-change-it