To Trust or not.

keef123

I have a copy of the will and it does mention Trustees and Nil Rate Trust.
Mum, my sister and I are all named Executors and Trustees of the will.

One point states 'I give the Nil Rate sum to my trustees upon trusts set out in the schedule hereto'

It later states that Mum 'has an interest in possession for Inheritance tax purposes.

and

'the Trust Fund' means the Nil-Rate Sum or the property or right to property from time to time

representing the same all other property that may at any time or times in the future be accepted

by the Trustees to be held by them upon the trusts contained in this schedule any

accumulations of income of the Trust Fund and the assets from time to time representing the

money property and accumulations or any part or parts of them.

I think I'll just learn a foreign language blindfolded with ear defenders on, it would be easier!! 

Thanks all

Keep_pedalling

NRB trusts have been obsolete since 2007  when the transferable NRB was introduced by Gordon Brown. I would suggest doing a deed of variation to get rid of that, it just adds unnecessary complications and potencial negative tax implications.

keef123

Keep_pedalling said:

NRB trusts have been obsolete since 2007  when the transferable NRB was introduced by Gordon Brown. I would suggest doing a deed of variation to get rid of that, it just adds unnecessary complications and potencial negative tax implications.

Sorry to be a bit thick here what will we need to do? A quick google finds a free deed of variation but is that all that is needed or would a solicitor be better employed?

Keep_pedalling

I think to be on the safe side you and your family should see a STEP qualified solicitor, but do it quick you don’t have too much time.

Ideally you should be looking at changing the NRB trust to an immediate post death interest trust. This will protect both you, your sibling and your mother’s and best interests and avoid any surprising tax liabilities down the line. 

keef123

Thank you all for your advice, the above is exactly the path we took.