I have a will where the deceased who died Dec 2025 created a NRB legacy which is payable to a trust created in 2004. The trust was constituted with £10 but no further additions have taken place.
The wife and children wish to avoid ongoing trust administration and wish to appoint the NRB gift to the widow.
A deed of variation is not viable as the Trust contains minor beneficiaries so not all can consent.
Settling the NRB legacy and then appointing out to the widow seems the only way round this., however my understanding is that if this is the route taken, then the deceased’s NRB is treated as being used up as section 144 does not apply to appointments out of existing relevant property trusts, but only trusts created by Will/intestacy/deed of variation. This then means that the IHT exposure for the widow is increased as the NRB on first death is used to settle the gift into the Trust and the appointment out to widow does not qualify for reading back under section 144?.
Would you agree with this?