Sentences with phrase «nil rate»

Probably both included discretionary nil rate band trusts with any residue going to the surviving spouse; Mrs Phizackerley's certainly did.

Moore Blatch warns, however, that hundreds of thousands of wills may need reviewing as they will include historic IHT management measures including the use of Nil Rate Band Discretionary trusts in their wills.

This is something to bear in mind when revisiting the wills of living couples, especially those who have discretionary nil rate band trusts in their existing wills.

Adopting an integrated approach to the creation and subsequent administration of nil rate band trusts can make life that little bit easier for the practitioner.

I reported in April how Yorkshire law firm Denison Till used new legislation to help clients avoid a # 30,000 inheritance tax bill by transferring the unused nil rate band of the deceased's husband, an RAF officer who died in action in 1943.

«It was perfectly valid wording pre-2008, before the transferable nil rate band came in.

In addition, the new Residence Nil Rate Band, potentially giving married couples and civil partners an additional exemption of up to # 200,000 on the second death, is not available to cohabitees passing assets to their children.

This provision is often included to protect assets for the children against divorce, bankruptcy, spend - thriftiness or some sort of disability, but now if the money goes to a Discretionary Trust then the new residence Nil Rate Band can't be used.

A good law firm has all the background legal knowledge required to deal successfully with all the complex issues, such as will interpretation and the intentions of the deceased, Rules of Intestacy, transferable nil rate sums, gifts to children, trusts, income tax, inheritance tax, capital gains tax and property matters.

@ 1 - nil I rate Santos right now.

Trust and probate specialist John Goodrich used new legislation to transfer the unused nil rate tax band of the lady's husband, an RAF officer who died in action in 1943 — more than 65 years before his wife.

These were very common for people who exceeded the original Nil Rate Band limit in 2007.

Indeed, there will be many nil rate hours, for a variety of reasons good and bad, including the thousands of hours clocked up across the firms on pro bono work for those without means, including countries which need help with establishing the rule of law or negotiating international trade access.

As with pre-FA 2006 discretionary trusts, an 18 — 25 trust which has a value within the IHT nil rate band (currently # 300,000) is unlikely to incur these additional IHT charges.

But the law also needs to be simplified; for example some problematic provisions relating to the complex Residence Nil Rate Band need to be addressed.

The late Valerie Smith left her family such assets or cash «of an aggregate value equal to such sum as is at the date of my death the amount of my unused nil rate band for inheritance tax».

Jayne's practice covers a diverse range of charity matters and recent work includes advising on multi-jurisdictional regulatory and compliance concerns and a contested legacy involving an ambiguously worded transferable nil rate band.

Since 9 October 2007, the percentage of nil rate band used on the earlier death can be rolled over to the surviving spouse or civil partner, irrespective of when that death occurred — even if it was 67 years ago, as in this case.»

Provided a polygamous marriage ceremony conducted abroad is legal in the overseas country, all the parties are treated as «spouses» for the purpose of transferring unused nil rate band.

With Hampshire properties having enjoyed significant rises in house prices, Moore Blatch is advising residents to review their wills to ensure they are benefiting from the new Residence Nil Rate Band (RNRB).

The four rates are: basic rate (if they have an income of # 200 a week or more); reduced rate (if they have an income of more than # 100 but less than # 200 a week); flat rate (if they have an income of between # 5 and # 100 a week); and nil rate (if they have an income of less than # 5 a week).

The government's own (long - awaited) review of the taxation of non-domiciled tax payers was hurriedly brought to a conclusion and a useful, but more modest, change to the nil rate band was introduced.

However, time has passed; political positions have changed and property prices have risen faster than the nil rate band, which is the threshold below which IHT is not charged, currently # 312,000.

It is now the case that any nil rate band which is not used up on the death of a spouse can be carried forward to the death of the widow or widower.

The Conservative Party stole a march on the government last October when George Osborne announced that he would raise the nil rate band to # 1m and fund that by a # 25,000 annual charge on «non-doms».

«However, not all nil rate band clauses are in this form and there will be many instances where the wording only passes a single nil rate band.

This transfer of the nil rate band is not available to unmarried couples.

10th September 2015 Private Client IHT, inheritance tax, nil rate band, probate, wills Posted by Raveet Phull

The biggest legal development within my specialism was the introduction of the Residence Nil Rate Band, affecting the amount of money people can leave to their offspring without being subject to Inheritance Tax (IHT).

Where assets pass from a UK domiciled spouse or civil partner to a non-UK domiciled spouse or civil partner, then the spouse exemption is limited to the Nil Rate Band.

Such issues include large lifetime gifts using up the nil rate sum, difficulties over distribution of chattels and specific gifts.

Simon Cook says: «The claim enabled my client's nil rate band to be doubled from # 312,000 to # 624,000.

So Mr Cook — head of Thomson & Bancks» private client department — succeeded in reducing the liability of his client's estate's to inheritance tax by transferring her first husband's nil rate band — even though he died in 1942.

Their father's will (he died a year before his wife) included a nil band rate discretionary trust — correct tax advice at the time, but leaving no unused nil rate band that could be transferred to his widow's estate.

In effect her children were able to benefit from three nil rate bands.

The size of Dr Phizackerley's estate when he died does not suggest there was scope to transfer sufficient other assets to his wife during her lifetime to fund the nil rate band trust coming into effect under her will.

There was nothing inherently unsound in the concept of using discretionary nil rate band will trusts to enable both nil rate bands to be used, or in severing the joint tenancy of the family home to provide an asset to go into the will trust on first death.

And even where a couple's contributions to the cost of a family home are manifestly unequal and it is necessary for a share of its value to be placed in the nil rate band trust, there is still no problem as long as the executors achieve that by taking a legal charge over the property rather than an IOU from the surviving partner.

To satisfy the nil rate band legacy the executors will need to use the deceased spouse's half share of the family home to make up as much of the nil rate legacy as possible.

Mrs Phizackerley's nil rate band was used up to the value of her estate when her assets passed into her discretionary nil rate band trust in 2000.

But over # 150,000 of Dr Phizackerley's nil rate band was wiped out by his inability to deduct his IOU debt, which had become an asset of his wife's nil rate band trust, from the value of his own estate which at his death included the whole value of the family home.

Ideally the will contains provisions allowing the trustees of the nil rate discretionary trust to accept either an IOU from the surviving spouse or an equitable charge over the deceased spouse's half share of the family home.

As was the case with pre-FA 2006 discretionary trusts, trusts which have a value falling within the nil rate band (currently # 300,000) are unlikely to incur IHT charges within the relevant property regime.

In theory the same issues apply to nil rate band trusts implemented solely using an equitable charge.

The transferable nil rate band which government proposed to introduce, retrospectively to 9 October 2007, in the Finance Bill 2008 means a married couple or civil partners can now offset both their nil rate bands against their joint estate for IHT purposes without the sort of financial planning undertaken by the Phizackerleys in 1996.