Nil Rate Band Discretionary Trusts
You may have come across one of these trusts if you have been dealing with the Will of a husband or wife, or a parent, who has passed away. Like many people, you may have been unsure what was meant by the trust or how it should be dealt with, and decided to ignore it. Frequently, families dealing with a Will without any professional advice simply transfer all the assets of the deceased to the surviving husband or wife.
However, this does not mean that the trust has gone away and it will need to be formally wound up in due course when the surviving husband or wife passes away.
Depending on family circumstances, there could be good reasons for keeping the trust and formally setting it up.
For example, the trust fund could be used for the benefit of the surviving husband or wife, but would not be part of their assets if they needed care.
It could also be used to provide for children and grandchildren if they needed a little financial assistance, but they wouldn’t have an entitlement to the money and couldn’t demand that anything was paid to them.
If you are having to consider what to do with a Will trust and would like to discuss how the trust could best be dealt with, or how to bring it to an end, please contact Christine Harley at firstname.lastname@example.org.