The benefits and reasons for a Nil Rate Band Trust in a Will for a single person
All money left into a Trust is immediately accessible by the Beneficiaries upon death and does not have to go through probate – very helpful where funeral costs need to be considered and a prepaid funeral plan has not been put in place.
Up to £325,000 can be protected in this way.
Excellent if a property has already been conveyed into a Protective Property Trust during a lifetime that is valued at under £325,000. Upon death, the difference between the value of the property and £325,000 can be safeguarded for the Beneficiaries in the Nil Rate Band Trust.
Beneficiaries can be protected against future loss during their lifetime through divorce, bankruptcy, the marriage of their partner after their death and even care home fees, through the use of special loan notes created by the Trustees.
In the same way, that which is in a Trust can be excluded from a Beneficiary’s estate for inheritance tax purposes, meaning generational inheritance tax on that part of the deceased’s estate is stopped in its tracks for good.
Nil Rate Band Trusts - everyone’s best friend.
Make sure you include yours in your Will.