Mothers will, discretionary trust and lofe interest trust

Flamingo1705

Good afternoon . My mother recently passed away . The legal advisor who made her will has not helped atall, and all he has said is we don't need probate or pay iht. Looking into things I started to read up on registering trust.
Long story short I've had some initial advice for a will specialist looking over my mother's will and will meet with her next week to discuss things further . 
In my mother's will there is a discretionary nil rate band trust and a life interest trust ,is it normal for there to be two trust ?
She has advised for the life interest trust we need probate , and she is unclear why two trust are involved and suggest maybe removing the discretionary nil rate band trust ?
My mother's wishes were to avoid care home fees and IHT for myself . The house is worth around £350 k and in savings £220k.
Anyone here able to advise. It's bad enough losing my mum and now dealing with all of this is making me ill.

Keep_pedalling

Who is the beneficiary of the life interest trust? If it is your father and he owned their house as a tenant in common with your mother the then the original advisor is correct you don’t need probate as far as the house is concerned as you father is the beneficial owner of the entire property until his death. 

It is unusual to see a NRB trust on a modern will as they became fairly redundant on the introduction of the transferable NRB way back in 2007 and it will not save any IHT. It will will however avoid any of her savings being uses to provide care for your father, but she could have simple left her saving to her children without the complication of a discretionary trust.  

Flamingo1705

Keep_pedalling said:

Who is the beneficiary of the life interest trust? If it is your father and he owned their house as a tenant in common with your mother the then the original advisor is correct you don’t need probate as far as the house is concerned as you father is the beneficial owner of the entire property until his death. 

It is unusual to see a NRB trust on a modern will as they became fairly redundant on the introduction of the transferable NRB way back in 2007 and it will not save any IHT. It will will however avoid any of her savings being uses to provide care for your father, but she could have simple left her saving to her children without the complication of a discretionary trust.  

Would you advise taking out the discretionary Trust with a deed of variation ?
I'm unsure what I need to do with the life interest trust in regards to running the trust and registering it ?
Thank you for your reply

Flamingo1705

Flamingo1705 said:

Keep_pedalling said:

Who is the beneficiary of the life interest trust? If it is your father and he owned their house as a tenant in common with your mother the then the original advisor is correct you don’t need probate as far as the house is concerned as you father is the beneficial owner of the entire property until his death. 

It is unusual to see a NRB trust on a modern will as they became fairly redundant on the introduction of the transferable NRB way back in 2007 and it will not save any IHT. It will will however avoid any of her savings being uses to provide care for your father, but she could have simple left her saving to her children without the complication of a discretionary trust.  

Would you advise taking out the discretionary Trust with a deed of variation ?
I'm unsure what I need to do with the life interest trust in regards to running the trust and registering it ?
Thank you for your reply

I'm not sure if the beneficiary is my father, he is the life tenant ? But I assumed the house was held in trust for me?

Keep_pedalling

Flamingo1705 said:

Flamingo1705 said:

Keep_pedalling said:

Who is the beneficiary of the life interest trust? If it is your father and he owned their house as a tenant in common with your mother the then the original advisor is correct you don’t need probate as far as the house is concerned as you father is the beneficial owner of the entire property until his death. 

It is unusual to see a NRB trust on a modern will as they became fairly redundant on the introduction of the transferable NRB way back in 2007 and it will not save any IHT. It will will however avoid any of her savings being uses to provide care for your father, but she could have simple left her saving to her children without the complication of a discretionary trust.  

Would you advise taking out the discretionary Trust with a deed of variation ?
I'm unsure what I need to do with the life interest trust in regards to running the trust and registering it ?
Thank you for your reply

I'm not sure if the beneficiary is my father, he is the life tenant ? But I assumed the house was held in trust for me?

Your father will be the life tenant, you won’t actually obtain your inheritance until his death. It will form part of his estate for IHT purposes but because it is covered by spousal exemption ( assuming they were married ) it does not impact your mother’s NRB nor does it leave you with a potential CGT liability.

Keep_pedalling

Flamingo1705 said:

Keep_pedalling said:

Who is the beneficiary of the life interest trust? If it is your father and he owned their house as a tenant in common with your mother the then the original advisor is correct you don’t need probate as far as the house is concerned as you father is the beneficial owner of the entire property until his death. 

It is unusual to see a NRB trust on a modern will as they became fairly redundant on the introduction of the transferable NRB way back in 2007 and it will not save any IHT. It will will however avoid any of her savings being uses to provide care for your father, but she could have simple left her saving to her children without the complication of a discretionary trust.  

Would you advise taking out the discretionary Trust with a deed of variation ?
I'm unsure what I need to do with the life interest trust in regards to running the trust and registering it ?
Thank you for your reply

If the beneficiaries of the DT are all adults and agree to do so, the trust can be wound up and the assets distributed among those beneficiaries.

DTs are a pain to manage and are subject to high tax rates so I would certainly be looking getting rid of if I could..

Flamingo1705

Keep_pedalling said:

Flamingo1705 said:

Flamingo1705 said:

Keep_pedalling said:

Who is the beneficiary of the life interest trust? If it is your father and he owned their house as a tenant in common with your mother the then the original advisor is correct you don’t need probate as far as the house is concerned as you father is the beneficial owner of the entire property until his death. 

It is unusual to see a NRB trust on a modern will as they became fairly redundant on the introduction of the transferable NRB way back in 2007 and it will not save any IHT. It will will however avoid any of her savings being uses to provide care for your father, but she could have simple left her saving to her children without the complication of a discretionary trust.  

Would you advise taking out the discretionary Trust with a deed of variation ?
I'm unsure what I need to do with the life interest trust in regards to running the trust and registering it ?
Thank you for your reply

I'm not sure if the beneficiary is my father, he is the life tenant ? But I assumed the house was held in trust for me?

Your father will be the life tenant, you won’t actually obtain your inheritance until his death. It will form part of his estate for IHT purposes but because it is covered by spousal exemption ( assuming they were married ) it does not impact your mother’s NRB nor does it leave you with a potential CGT liability.

Yes they were married . So if I'm the beneficiary is it right that the will specialist I'm seeing next week is suggesting probate to register and run the life interest trust.
Wow this all makes my head hurt .
Regarding the discretionary Trust I think my father was the beneficiary so I assume he could do a deed of variation to get rid of that ?

Flamingo1705

Keep_pedalling said:

Flamingo1705 said:

Keep_pedalling said:

Who is the beneficiary of the life interest trust? If it is your father and he owned their house as a tenant in common with your mother the then the original advisor is correct you don’t need probate as far as the house is concerned as you father is the beneficial owner of the entire property until his death. 

It is unusual to see a NRB trust on a modern will as they became fairly redundant on the introduction of the transferable NRB way back in 2007 and it will not save any IHT. It will will however avoid any of her savings being uses to provide care for your father, but she could have simple left her saving to her children without the complication of a discretionary trust.  

Would you advise taking out the discretionary Trust with a deed of variation ?
I'm unsure what I need to do with the life interest trust in regards to running the trust and registering it ?
Thank you for your reply

If the beneficiaries of the DT are all adults and agree to do so, the trust can be wound up and the assets distributed among those beneficiaries.

DTs are a pain to manage and are subject to high tax rates so I would certainly be looking getting rid of if I could..

I've just had a look at the will and the discretionary nil rate trust beneficiaries are my father myself and my 7 year old son ( remoter issue alive atmy death ). Does this mean we cannot do a deed of variation

Keep_pedalling

Flamingo1705 said:

Keep_pedalling said:

Flamingo1705 said:

Keep_pedalling said:

Who is the beneficiary of the life interest trust? If it is your father and he owned their house as a tenant in common with your mother the then the original advisor is correct you don’t need probate as far as the house is concerned as you father is the beneficial owner of the entire property until his death. 

It is unusual to see a NRB trust on a modern will as they became fairly redundant on the introduction of the transferable NRB way back in 2007 and it will not save any IHT. It will will however avoid any of her savings being uses to provide care for your father, but she could have simple left her saving to her children without the complication of a discretionary trust.  

Would you advise taking out the discretionary Trust with a deed of variation ?
I'm unsure what I need to do with the life interest trust in regards to running the trust and registering it ?
Thank you for your reply

If the beneficiaries of the DT are all adults and agree to do so, the trust can be wound up and the assets distributed among those beneficiaries.

DTs are a pain to manage and are subject to high tax rates so I would certainly be looking getting rid of if I could..

I've just had a look at the will and the discretionary nil rate trust beneficiaries are my father myself and my 7 year old son ( remoter issue alive atmy death ). Does this mean we cannot do a deed of variation

As there is a minor beneficiary involved I don’t think you can do anything but set up the trust. Would I be right that this was not a solicitor who drew up this will?

Keep_pedalling

Flamingo1705 said:

Keep_pedalling said:

Flamingo1705 said:

Flamingo1705 said:

Keep_pedalling said:

Who is the beneficiary of the life interest trust? If it is your father and he owned their house as a tenant in common with your mother the then the original advisor is correct you don’t need probate as far as the house is concerned as you father is the beneficial owner of the entire property until his death. 

It is unusual to see a NRB trust on a modern will as they became fairly redundant on the introduction of the transferable NRB way back in 2007 and it will not save any IHT. It will will however avoid any of her savings being uses to provide care for your father, but she could have simple left her saving to her children without the complication of a discretionary trust.  

Would you advise taking out the discretionary Trust with a deed of variation ?
I'm unsure what I need to do with the life interest trust in regards to running the trust and registering it ?
Thank you for your reply

I'm not sure if the beneficiary is my father, he is the life tenant ? But I assumed the house was held in trust for me?

Your father will be the life tenant, you won’t actually obtain your inheritance until his death. It will form part of his estate for IHT purposes but because it is covered by spousal exemption ( assuming they were married ) it does not impact your mother’s NRB nor does it leave you with a potential CGT liability.

Yes they were married . So if I'm the beneficiary is it right that the will specialist I'm seeing next week is suggesting probate to register and run the life interest trust.
Wow this all makes my head hurt .
Regarding the discretionary Trust I think my father was the beneficiary so I assume he could do a deed of variation to get rid of that ?

As long as they held the property jointly and it was not in your mother’s sole name, probate is not required to deal with the home. Unlike the discretionary trust there is no ongoing work required other than registering the trust with HMRC which has to be done with 2 years of your mother’s death. 

Malthusian

Flamingo1705 said:

I've just had a look at the will and the discretionary nil rate trust beneficiaries are my father myself and my 7 year old son ( remoter issue alive atmy death ). Does this mean we cannot do a deed of variation

No, as the seven year old cannot consent to that.
Who are the trustees of the trust, and how much discretion are they given on how to distribute funds to the beneficiaries?