Assets to put into a trust

waveyjane

By the way, although not I don't think relevant for IHT planning, a Nil Rate Band Discretionary Trust in a will can be useful in some circumstances. You could for example use it to help a vulnerable beneficiary deal with a legacy better, prevent them from losing means tested benefits, or perhaps enable a child to insulate an inheritance received during marriage from being split in a divorce settlement.

I'm not a solicitor, but it might be worth asking one about an NRBDT if any of those things might be an issue.

Keep_pedalling

waveyjane said:

By the way, although not I don't think relevant for IHT planning, a Nil Rate Band Discretionary Trust in a will can be useful in some circumstances. You could for example use it to help a vulnerable beneficiary deal with a legacy better, prevent them from losing means tested benefits, or perhaps enable a child to insulate an inheritance received during marriage from being split in a divorce settlement.

I'm not a solicitor, but it might be worth asking one about an NRBDT if any of those things might be an issue.

NRBDTs used to be very popular but have become virtually redundant since the transferable NRB came in. They still have their limited uses but protecting a vulnerable beneficiary is not one of them. 

waveyjane

Keep_pedalling said: They still have their limited uses but protecting a vulnerable beneficiary is not one of them. 

Not according to the sources I've read:

https://www.battens.co.uk/insights/my-will-has-a-nil-rate-band-discretionary-trust-in-it-should-i-change-it

"If there are vulnerable beneficiaries who you want to receive the benefit of your estate but they may not be able to manage large sums of money on their own, then a nil rate band discretionary trust is worth considering. The trustees will have control of the trust fund and can manage it for the beneficiary. Further, if a beneficiary is in receipt of means tested benefits then their entitlement to these benefits is protected by using a discretionary trust. Otherwise the beneficiary may lose their entitlement to benefits if they inherit a lump sum."

Keep_pedalling

waveyjane said:

Keep_pedalling said: They still have their limited uses but protecting a vulnerable beneficiary is not one of them. 

Not according to the sources I've read:

https://www.battens.co.uk/insights/my-will-has-a-nil-rate-band-discretionary-trust-in-it-should-i-change-it

"If there are vulnerable beneficiaries who you want to receive the benefit of your estate but they may not be able to manage large sums of money on their own, then a nil rate band discretionary trust is worth considering. The trustees will have control of the trust fund and can manage it for the beneficiary. Further, if a beneficiary is in receipt of means tested benefits then their entitlement to these benefits is protected by using a discretionary trust. Otherwise the beneficiary may lose their entitlement to benefits if they inherit a lump sum."

They also mention care fees of a surviving spouse, but a life interest trust is the normal approach for that.