NRB DISCRETIONARY TRUST
27/04/2009
For many years a popular way of making use of an individual’s NRB and achieve a saving of IHT across the estates of two spouses and more recently two civil partners was to make a settled legacy of the NRB to a discretionary trust. A discretionary trust was used to afford the surviving spouse or civil partner the opportunity to benefit from the value of the trust fund as a beneficiary of it whilst at the same time not to have the deceased’s legacy combined with the estate of any of the beneficiaries on their respective deaths but to be kept separate and be taxed separately under the relevant property regime. This became the prime way in which a married couple protected their matrimonial home from IHT.
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