Unwinding Unwanted Nil Rate Band Trusts
“Incredibly dedicated and committed to her clients. She can do both the non-contentious and contentious sides very, very well.”
“Far better value for money than many firms with more expensive addresses. Serious knowledge of the law and committed engagement with their clients.”
Many existing Wills contain a nil rate band trust which became unnecessary for its main intended purpose with the introduction in October 2007 of the transferable nil rate band between the estates of spouses. Where both spouses are still alive a new Will can be made to revoke the nil rate band trust will but if this is not done for whatever reason, the nil rate band trust can still be unwound after the death of the first spouse.
The easiest way to do this and unwind the trust is for the trustees to appoint the trust assets in favour of the surviving spouse absolutely. This must be done within two years of death but not within the first three months following the death of the first spouse. Provided these time limits are complied with the appointment will be treated for IHT purposes as if the assets had simply been left to the surviving spouse outright, so the surviving spouse will have the benefit of the transferrable nil rate band. See Section 144 IHTA 1984. If the appointment is made within 3 months of the date of death it may be treated as a chargeable IHT event and there will be no reading back in to will.
Provided that the appointment is made during the period of administration the estate, which it normally would be, it will not give rise to a capital gains tax liability as the spouse will acquire as legatee.
The appointment out during the administration of the estate may be the preferred option but there are of course other uses for nil rate band discretionary trust wills, in addition to the preservation of the nil rate band of the first spouse, so this should not be done without full consideration of any other benefits preserving it might achieve.
"I wish to thank you for your advice, efficiency and professionalism throughout which has been greatly appreciated."
"I am proud to be a private client of Osbornes Solicitors LLP, a client of many years. I appreciate the swift and efficient work of the Private Client Department Team."
"Jan Atkinson, with her steely, steady, calming presence, instils confidence in the most highly-strung of us clients. With her masterful knowledge of the law, old and new, and its application, Jan can navigate through the most complex of cases to a successful end."
"I find Osbornes’ client-friendly approach welcoming and refreshing"
"A medium-sized London firm dealing with big litigation and doing it extremely well because of a depth of expertise and experience."
My family had the pleasure of Jan Atkinson working with us on the will and probate issues of [my mother's] estate in Camden and Ireland after she passed on last year. Jan and her assistant(s) offered us a fantastic service at a sad time.
"Jan Atkinson stands out for her wide-ranging knowledge and experience of estates; whatever problem you throw at her, she has seen it all before and is able to find a creative and sustainable solution. She has exceptional commitment to her clients and explores every avenue to find the best solution for them"
The team is very caring, experienced and detailed and was clear about the next steps and offered very helpful advice and suggestions
Jan Atkinson has extensive experience in private client matters, which underpins her excellent skills in the contentious probate area. Plus she is strong on international matters
A small but formidable team, punching above its weight. Jan Atkinson is a seasoned pro. Approachable but no push-over
"They are an outstanding firm to work with. They are consistently impressive in their work."
"Elspeth Neilson is very reliable and practical."
"The team frequently deals with cross-border estates for high–net-worth individuals."
"The team were extremely professional in putting my needs first. There was a joined-up approach to catering for the client, and all lawyers involved were briefed and constructive."
The situation was handled by your extremely competent, efficient hands - I would not hesitate to recommend Osbornes to others.
"Service prompt and effective. I have absolute confidence in Maggie."
I am happy with the service that I got and would recommend you to other potential clients.
I found Osbornes always very helpful and efficient.
We are very pleased with the services of Osbornes. Highly professional and through with close attention to detail.
I would highly recommend Jan Atkinson in any probate matter and Osbornes Solicitors in any other legal matters.
Jan Atkinson is a very proficient lady whom I would highly recommend to anyone involved in probates.
Thanks for all your work and explaining everything so clearly. For any legal matters in the future I would not hesitate in instructing Osbornes.
We have found your service to date as the most informative we have come across.
Osbornes Solicitors always responded promptly to any request for information I had.
“Geoffrey’s affairs were dealt with just the right combination of friendliness and professionalism, which really helped.”
Jan Atkinson is confident with a straightforward approach. Her practice covers both contentious and non-contentious matters, including wealth planning and estate administration.
I would like to thank everyone in my case for the excellent job!
Accreditations
New and Insights From our LawyersVIEW ALL
20.10.2021Evidence Needed When Contesting A Will
‘Scrap King’ Multi-million Inheritance Dispute Confirms the High Standard of Evidence Needed to Contest a Will Gary Goodwin, son of...
Read more- 20.10.2021
Contentious Probate Dispute Surrounding Interpretation
The ‘nil rate band’ offers an incentive to testators to make their will in a tax-efficient manner, maximising the amount...
Read more 
20.10.2021Handwriting Expert Witness Concludes Will Forgery
It’s not unheard of for an individual to forge someone’s will with the aim of securing an inheritance....
Read more
20.10.2021Contested Will Claim Succeeds on Capacity
A sad case in which a bereaved father made a will without the requisite mental capacity to do so has...
Read more- 20.10.2021
Contested Will Claim Against Estate Fails
The recent reported case of Shearer v Shearer highlights that adult children cannot expect an estate to support their affluent...
Read more - 17.9.2021
Funding of Probate disputes
Probate disputes can be very expensive and clients often find it difficult to find the money to cover their legal...
Read more
The Will, Probate and Disputed Estate Team View the whole team
Jan Atkinson
Partner
Wills, Probate & Disputed EstatesMaggie Leiper
Partner
Wills, Probate & Disputed EstatesElspeth Neilson
Partner
Wills, Probate & Disputed EstatesJenny Walsh
Partner
Wills, Probate & Disputed EstatesFlorence Arbuthnott
Associate Solicitor
Wills, Probate & Disputed EstatesSuzanna Baker
Associate Solicitor
Wills, Probate & Disputed EstatesView the
whole team
