Residence NRB question

Flowerpotperson

Within my deceased uncle’s estate there is a house that could be transferred to a stepdaughter. This would attract RNRB however would it be deemed as tax avoidance if she immediately disclaimed the inheritance, and put the proceeds back into the estate (Residual) to be split between the beneficiaries.

Keep_pedalling

I think you may be misunderstanding how the RNRB works. You do not have to leave your home to a direct descendant or step child. If the will leaves them an amount equivalent to the house value or higher you can still claim it. How much has she been left? Is the transferable RNRB also available?

I really think you should be obtaining professional help with this estate.

Flowerpotperson

All of the beneficiaries are (with the exception of the Residual Beneficiary - who does not qualify for RNRB) getting pecuniary amounts considerably less than the house value. Yes there is transferable RNRB available.

Keep_pedalling

Flowerpotperson said:

All of the beneficiaries are (with the exception of the Residual Beneficiary - who does not qualify for RNRB) getting pecuniary amounts considerably less than the house value. Yes there is transferable RNRB available.

In which case you can’t transfer the house to the step daughter without the residual beneficiary making a deed of variation. If you could do this it would be tax evasion to but the money back to the estate. 

Can you give us some numbers here, total value of estate and amount going to the residual beneficiary?

A couple more questions when was the will made, when did he marry his step daughter’s mother?

Keep_pedalling

If your co executor agrees I think I would be handing this over to a solicitor to deal with. All cost involved with doing this come out of the residuary estate so it would not impact the minor beneficiaries. 

DancingBadger

The default advice on this forum is to DIY probate wherever possible.  However, there are instances where taking proper legal advice is the best way forward.

As keep @Keep_pedalling has advised, OP, consulting a solicitor at this stage appears to be the safest option for you.  Judging by what you have written so far, you are quite probably going to leave yourself open to litigation.

For your own sake, please don't underestimate the level of responsibility and (more importantly) accountability, of the role of executor.  It's not a task to be undertaken lightly.

Flowerpotperson

Thanks for all responses. The other executor is a solicitor, who so far has been somewhat unhelpful, in any conversation to reduce the IHT on the estate. I think it may be time for me to keep out of the discussions the beneficiaries are having, and let them fight it out !

Keep_pedalling

Flowerpotperson said:

Thanks for all responses. The other executor is a solicitor, who so far has been somewhat unhelpful, in any conversation to reduce the IHT on the estate. I think it may be time for me to keep out of the discussions the beneficiaries are having, and let them fight it out !

Have you actually actively carried out any of your executor role other than register the death and informed banks and utilities of the death? if you have not tell the solicitor executor that you want to renounce your powers. it will save you lot of agro and will be the best thing for your mental health. 

Flowerpotperson

Hi Keep_pedalling. Thanks for your comments. Yes this is proving to be all rather stressful. I have thought about renouncing my role, however I have all of the chattels to deal with and am concerned I would loose access to the house. I am handing as much as possible to the solicitor. Thanks again.