Discretionary trust will: IHTnrb, resid to spouse for life

This will combines several simple features to avoid all liability to IHT. First, the testator can give gifts to anyone, as specified. This however, will use up some of the nil rate band allowance. Second, a discretionary trust is created, which is the balance of the nil rate band.  This gives your trustees great flexibility, to deal for example with a family business.

The will then provides for you to instruct your trustees in a side letter exactly how you would like them to exercise their discretion among the beneficiaries you have named in your will. We provide an example letter of instruction.  Under the law at August 06, no inheritance tax will be payable on your death. IHT will be payable on the death of your spouse. This is a simple way to minimise IHT.

The rest of your estate (residue) goes into a second trust to your spouse for life, remainder (after her death) to your children. Inheritance tax on the remainder will of course be payable as part of her estate when she dies.  Children are also given by default any business or other non-chargeable assets up to value you specify.

The document provides for full trust provisions with wide powers to trustees. It is most suited to middle aged or older parents because the majority of the estate passes to the spouse. The children get only the maximum permitted by the nil rate band, after your other specified gifts.

As there is no settlement for IHT purposes, the children can permit widow/er to live in house if that is part of property given, without tax consequences.

The Net Lawman wills are suitable for most situations.  If the will you need is not here, we can draw a will to your precise instructions for a very reasonable fee.

In these descriptions: “remainderman" means the person entitled to capital and any accumulated income after the death of a person with a life interest (a “tenant for life”).