Dealing with NRB Discretionary Trusts

Nil rate band discretionary trusts are commonly encountered in wills. They present problems for advisers and for the family. Should they be retained or wound up? This session looks at the matters that need to be considered when making that initial decision. It then goes on to consider the steps involved if the decision is in favour of winding up. Often there are good reasons for retaining the trust and the session looks at the ongoing income tax and CGT treatment of such trusts. It also looks at problems for the trustees in relation to self-dealing and fraud on power.

Learning Objectives:

• Advise families on the reasons for including an NRB discretionary trust in a will;
• Advise families on the options available for dealing with NRB discretionary trusts and the respective advantages and disadvantages;
• Suggest ways of minimising the costs of running an NRB discretionary trust;
• Identify issues with the rule against self-dealing and fraud of power.