NRB Gifts Flashcards
1
Q
What is the NRB?
A
£325,000 per individual tax free
2
Q
When is NRB not used?
A
If entire estate passes to exempt beneficiaries
3
Q
When is NRB partially used?
A
If gifts to non-exempt beneficiaries are less than NRB
4
Q
When is NRB fully used?
A
If gifts to non-exempt beneficiaries exceed the NRB
5
Q
How could you avoid using NRB for non-exempt beneficiaries?
A
Use a discretionary trust on first death with survivor and descendants as beneficiaries
6
Q
What should you avoid when drafting NRB gifts in a will?
A
Avoid fixed-sum gifts for NRB, i.e. don’t say £325,000 to X, say I give my full nil rate band as is available to my daughter
