Case Study: RNRB Inheritance Tax Allowance
How a married couple with assets over £2m ensured they don’t lose out on the extra RNRB Inheritance Tax allowanceMr and Mrs T were concerned that they may lose out on the extra Inheritance Tax (IHT) allowance, the Residence Nil Rate Band (RNRB), because the value of their home has increased significantly. Their assets and property are worth more than £2 million and they were in danger of losing the additional IHT allowance at a rate of £1 of the “main residence” allowance for every £2 of assets over £2 million.
Discretionary TrustOn advice from Will Power Estate Protection, Mr and Mrs T chose a Discretionary Trust. The Will Power consultant examined Mr and Mrs T’s circumstances at length and advised that in addition to other trusts in their wills, a Discretionary Trust be added to their wills to reduce the amount of assets in the estate of the survivor, the relevant estate for these purposes.
Advice That Costs NothingThe Will Power expert advice cost nothing and Mr and Mrs T paid only for the preparation of the Trust, a fraction of the value of the assets which could have been forfeited unnecessarily. Mr and Mrs T now have peace of mind that they will not now lose out on the new extra Inheritance Tax allowance even though their assets are over £2m.
“The Willpower consultant was a huge help and gave lots of valuable advice that should get us on track for some financial peace of mind.”