Explaining Nil-Rate Band Discretionary Trusts to clients can be a tricky thing. It requires the client to understand what a nil rate band is, what a trust is, how it works, what trustees do and what this means for their beneficiaries. It’s not an easy concept to grasp or explain!
Nil-Rate Band Discretionary Trusts (NRBDT) were frequently found in wills made before 2007 due to the lack of transferable nil-rate bands between married couples. They then became even less common from 2017 due to the introduction of the Residence Nil-Rate Band. Whilst they still had and have their uses for unmarried couples and remarried widows, NRBDTs generally became a less frequent part of modern estate planning.
With the freezing of nil rate bands until April 2030, the proposed limits on APR/BPR and bringing unspent private pension pots into the taxable estate from 2027, the value of NRBDTs is now back at the forefront of what an estate planner can offer their clients. NRBDTs can save inheritance tax, help protect assets and enable a flexible response to the needs of beneficiaries.
Understandably, practitioners may have found their knowledge of these a bit rusty or not have any information they could readily give to their clients. Practitioners who have joined the industry recently may have little or no experience of NRBDTs.
Are you ready for the re-emergence of NRBDTs?
The Estate Planner’s Toolkit has developed a Nil-Rate Band Discretionary Trust package to help you have the information you need for your clients and save you the time, effort and expense of creating your own.
Our professionally designed and expertly written NRBDT package includes:
- A two-page general guide to NRBDTs
- Four single page examples so you can select the right one for your client.
- Unmarried couples
- Blended families
- Couples with estates of £2million plus
- Remarried widows and widowers
As with all Estate Planner’s Toolkit products they are branded with your logo and business contact details, and you will have these within 5 working days of your order.
The NRBDT package is available to purchase at https://estateplannerstoolkit.co.uk/product/nil-rate-band-discretionary-trust-package-copy/
Customer Feedback on NRBDT package
‘I think they are great. I particularly like the fact that you have split them into 4 x factsheets so that they refer to different scenarios and can give the specific factsheet to the client. I know many professionals that struggle to understand the NRBDT so I can only imagine the confusion there would be with a client if you tried to explain everything in the one factsheet. It’s a brilliant toolkit you have created and one that I use a lot.’ Paul Stanford TEP, Stanford Legal Services.
‘Thank you, these are great as usual. It’s a very difficult thing to even understand (I found) let alone explain so you’ve done a fantastic job.’ Graham Southorn, Bristol Wills.
If you have questions about the NRBDT package or any other of our Estate Planner’s Toolkit resources, please book a demo https://estateplannerstoolkit.co.uk/book-a-demo/
The NRBDT package is to help you have information to give to your clients when you determine that there is an appropriate need. It is not a training resource for you as a practitioner, so please seek relevant learning or training opportunities if needed. A good starting point for this is The Society of Will Writers CPD quiz in the College of Will Writing (NRBDT quiz September 2024).
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This article was submitted by The Estate Planner’s Toolkit as part of their partnership with The Society of Will Writers. The views expressed in this article are those of the submitter and not those of the SWW.
