Case Study: RNRB Inheritance Tax Allowance

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 allowance

Mr 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 Trust

On 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 Nothing

The 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.”

About Will Power

Will Power has been helping families take care of their future since 1992 and have well over 10,000 local clients. We come to you, our advice costs nothing, and we spend the minimum amount possible of your time carefully exploring your circumstances. You can be sure that once we have visited and examined your family’s situation, we will recommend the most appropriate wealth and care fee protection services for you and your family. Will Power is a member of the Institute of Professional Willwriters and is compliant with IPW code of practice.