What is a Nil Rate Band Trust?
The Nil Rate Band (NRB) trust is a discretionary trust where the surviving spouse can be both a Trustee and a Beneficiary. Assets up to the total of the NRB allowance can be placed in the trust. This type of trust allows both a husband and wife to use the full NRB on the first death, while leaving the survivor in occupation of the family home
This ensures that the survivor can use any property or share of property, but on the survivor’s death the value of the assets within the trust are not liable to inheritance tax (IHT). If necessary some or even all of the assets can be transferred to the survivor but such amount will be included in the survivor’s estate.
The whole point of the NRB trust is to save inheritance tax.