Technical Areas - Generic

Question 1

What are the main features of the residence nil rate band?

Answer 1

• home must be inherited by direct decendants (children) or lineal decendants (grandchildren)
• RNRB for 20/21 is £175,000 per person
• unused RNRB can be transferred to surviving spouse (even if first death was before 6/4/17)
• if the value of the home is less than the RNRB then the RNRB is reduced to the value of the home
• RNRB is reduced if the value of the estate exceeds £2m - £1 for every £2 over this limit
• RNRB is protected if Jim and Sandra downsize, and assets of an equivalent value are passed to direct decendants on death

Question 2

Explain the duties of an executor

Answer 2

• determining the assets and liabilities of the estate
• collecting in the assets of the estate and paying any debts of the deceased
• settling any tax liabilities
• completing the necessary accounts
• paying IHT
• obtaining probate
• distributing the estate in accordance with the will once grant of probate has been issued