Nil-Rate Band Discretionary Trust Wills

Nil-rate band discretionary trust wills are useful tools for ensuring that your estate will be used to support your surviving spouse or civil partner after your death, while also taking advantage of both of your nil-rate bands to lighten the inheritance tax load on the inheritance for your children or other beneficiaries.  Traditionally, both partners would bestow an inheritance up to the value of the nil-rate band (currently £312,000) to their children, while transferring the rest of their estate to their spouse, thus avoiding inheritance tax completely after the first partner's death and only imposing it on the remaining sum of the second partner's estate after death.  However, the nil-rate band sum of assets given to the children can cause problems for the surviving partner who may lose the use and income from those assets.

Nil-rate band discretionary trust wills can help with this in the following way:

  • Upon death, a trust fund of the nil-rate band in value is created.
  • This provides the chosen beneficiaries of the fund with the income, and may grant them access to the capital of the trust.
  • In the case of property under trust, this can allow the surviving spouse or partner to continue to live in the property as one of the beneficiaries.
  • You can choose who you wish the beneficiaries to be, thus providing for your spouse or partner while still being confident that the fund will eventually be paid to your children, rather than for example to a partner's new spouse after your death.

For nil-rate band discretionary trust wills and other inheritance tax matters, take advantage of a free first consultation with no obligations that is on offer from a group of qualified UK financial consultants via our website.  Just fill out our short enquiry form and we will put you in touch with professional experts who can provide you with help in managing your estate to deal with inheritance tax.

Disclaimer: Every effort is made to keep the site accurate, however please bear in mind that tax rates are subject to change. If you require tax advice you should speak to a professional tax adviser.