RNRB

[Molly07]

Hi, new to this forum. A little confused re the RNRB. I have a house worth about £200k and some cash which will take me over the £325k. I have 2 grandchildren I would like to leave the house to. Do I have to make this clear when writting my will to ensure the RNRB is applied or will this automatically happen? Also, I would like for them to receive the money on reaching 25 years, one is now 25 and the other 21. Did I read that this could cause issues should I die before the youngest is 25.

[Pezza54]

Hi Molly
Your will needs to state you are leaving your house to your 2 grandchildren as joint tenants (50% each). Provided you still own the house when you pass, and the house is still worth over £175k then under current rules your £325k IHT nil rate band can be increased by £175k (resident nil rate band} making a total of £500K
This is not automatic. Whoever applies for probate must take into account IHT rules at the time of death and make sure the IHT form is completed correctly.
The will can be drafted so that one grandchild does not benefit from the will until he or she is 25. This would require a trust fund and the appointment of willing trustees to administer the fund. Are you sure you want to go down this route?