Closing A Discretionary Trust
Although you and your spouse may have been advised to include a trust as part of your wills, these trusts became somewhat unnecessary after the introduction of the transferable nil rate band, in 2007.
If you entire estate was valued over £298,000 at this time, then it is likely that you were advised to include a Discretionary Trust within your wills. This would transfer you or your spouse’s nil rate band, giving the surviving partner maximum allowance on the estate. However since then, the introduction of the transferable nil rate band has meant that as a married couple, you can transfer that Inheritance Tax free allowance between each other, so the
surviving partner benefits from two tax free allowances.
Closing your Discretionary Trust now may mean paying less tax on the final estate, so you should take this opportunity to contact a will writer to discuss closing the trust and re-writing your wills.