Residence Nil Rate Band

[Bouleversee]

An article about this in Sunday Times Money today includes the following:

"Generally speaking, the residence allowance is not available when the property passes into a trust on the deceased's death. (Another good reason for not leaving assets in a trust).

There can also be problems if a parent leaves the property to be inherited by children over the age of 25, or grandparents leave the property o be inherited by grandchildren at any specified age.

I don't understand the last para. Surely most children will be over the age of 25 by the time parents die. Or does it just mean that the property must be left directly at the date of death regardless of the age of the recipients and without specifiying when they can get their hands on it which would be tantamount to creating a trust?

[deadeyedjacks]

"Surely most children will be over the age of 25 by the time parents die."
I wasn't...

Note that it's only the element of the primary residence inherited by the direct descendants of the deceased that's eligible for RNRB.

Broadly any restrictions on normal direct inheritance rules such as trusts / age restrictions will negate eligilibity for the residence nil rate band.

[deadeyedjacks]

Indeed 'average' age to receive an inheritance is now sixty up from fifty-something in the 90s

https://www.telegraph.co.uk/finance/per ... e-age.html

[Bouleversee]

I think that situation is already in reverse, probably due to the parlous state of the NHS.