Q&As

Where a nil rate band discretionary trust is created by Will, but following the testator’s death the executors (who include the testator’s surviving spouse) consider it is not necessary or useful (because the estate is within the nil rate band in any case), what document should they use to bring it to an end? Who will need to sign the document?

read titleRead full title

Published by a ÀÏ˾»úÎçÒ¹¸£Àû Private Client expert
Published on: 16 February 2017
imgtext

In conducting our Research we have focussed on the options available to the executors/Trustees assuming that they are able to deal with the trust within two years of the testator’s death.

The Estate is still in administration

If the estate is still in administration and the nil rate band (NRB) Discretionary trust has not yet commenced, the whole class of discretionary beneficiaries (if they are adult, of sound mind and in agreement) may enter into a deed of variation with the executors such that the Will is read as if the clause settling the NRB discretionary trust was never included (or such variation as the parties wish). By way of example, see the following Precedents:

  1. •

    Lexis Smart Precedent: Deed of variation

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Discretionary trust definition
What does Discretionary trust mean?

A trust in which the trustees have power to select the beneficiaries to benefit from the trust.

Read more

Popular documents

Nature and classification of trusts—constitution of trusts

Nature and classification of trusts—constitution of trustsConstituting the trustIn general no trust is created, whatever intention the settlor has manifested, unless legal title is vested in the trustees. This is known as constituting the trust. The trustees must have control of the property. If

Trustees—power of advancement

Trustees—power of advancementThe trustees are under a duty to manage the trust fund as to both income and capital until the beneficiary reaches the vesting age.Note that on 27 February 2023 the Marriage and Civil Partnership (Minimum Age) Act 2022 came into force meaning that on or after this date

What is the difference between an appeal and a review?

What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a

Early leavers—preservation

Early leavers—preservationFORTHCOMING DEVELOPMENT: Section 10 of the Finance Act 2022 will increase the normal minimum pension age (NMPA) from 55 to 57 on 6 April 2028 (save for members of the firefighters, police and armed forces public service pension schemes).The Finance Act 2022 will also give