Birmingham Lake

"Wealth is not his that has it, but his that enjoys it"

-Benjamin Franklin

Traveling in the Alps

"Wealth consists not in having great possessions, but in having few wants"


Traveling in Crete

"Time is the most valuable thing a man can spend"

- Laertius Diogenes

Morris Dancing Birmingham

"The glow of one warm thought is to be worth than money."

-Thomas Jefferson

Alan Moran Independent Financial Adviser Birmingham

"I don't care too much for money for money can't buy me love"

- The Beatles

Traveling in the Red Sea

"Simple, genuine goodness is the best capital to found the business of this life upon. It lasts when fame and money fail, and it is the only riches we can take out this world with us."

-Louisa May Alcott, Little Men

cliffs of dover

"And though I have the gift of prophecy, and understand all mysteries, and all knowledge, and though I have all faith, so that I could remove mountains, and have not charity, I am nothing."

-St. Paul

Finance in the Big City

"Not he who has much is rich but he who gives much"

-Erich Fromm

Birmingham UK Sunset

"Life is what happens to you while you are busy making other plans"

-John Lennon

Travels - A well lived life

"I pity that man who wants a coat so cheap that the man or woman who produces the cloth shall starve in the process"

-Benjamin Harrison

It's Time to Review Your Will


Introducing RNRB

Is your Will as tax effective as it could be? In light of the recent inheritance tax changes you should consider reviewing your arrangements to make sure you are making full use of your nil rate bands, potentially saving your family thousands of pounds.

RNRB - Family Home Allowance

From 6 April 2017 a new form of nil rate band was introduced to “take the family home out of inheritance tax”. This new nil rate band is known as the Residence Nil Rate Band (RNRB). As special requirements must be met for the RNRB to be available to your estate you should consider reviewing your Will immediately to make sure you are making the best of the new tax rules.

What is the RNRB?

Before 6 April 2017 everyone had a nil rate band (NRB) of £325,000. This was the amount that they could give on their death before Inheritance Tax was payable. Married couples and civil partners have an extra advantage and may leave everything to their spouse or civil partner without using their NRB or paying inheritance tax. On the second spouses death they will then have their own NRB of £325,000 as well as their spouses NRB which may be transferred – so spouses and civil partners could give a maximum of £650,000 inheritance tax free.

The RNRB is a nil rate band which is additional to the NRB described above.

In 2020/21 it is £175,000 per person and it will increase in line with Consumer Prices Index (CPI) from 2021 to 2022 onwards. Any unused nil-rate band will be able to be transferred to a surviving spouse or civil partner.

The additional nil-rate band will also be available when a person downsizes or ceases to own a home on or after 8 July 2015 and assets of an equivalent value, up to the value of the additional nil-rate band, are passed on death to direct descendants.

The RNRB means that for a couple their home valued at up to £1,000,000 can be passed to their children free of IHT. However, this depends upon the terms of your Will and this may be a time to review it.



How Do I Qualify?

Not everyone will qualify for the RNRB. For the RNRB to be available a person must own a residence or a share in a residence that has been lived in by them at some point while they’ve owned it. This residence must be inherited by their “direct descendants”. Direct descendants includes your children, stepchildren, grandchildren and remoter issue, adopted children, children that you have been appointed special guardian of, and foster children.
The residence must be inherited by the descendants absolutely i.e. gifted to them directly, or must be left to them on certain types of trust. The types of trust that qualify are trusts where the descendant is treated as though they own the property. For example a life interest trust. (Contact your local estate planning advisor for more information on the trusts that qualify.) If the residence is left to your descendants on a discretionary trust then the RNRB will not be available. If your Will contains discretionary trusts then you should consider reviewing this.


Have There Been Any Other Tax Changes I Should Consider?

If your Will includes a ‘Nil rate band discretionary trust’ then you may need to review your arrangements to ensure you have a tax effective Will. A nil rate band discretionary trust is a form of trust that will only take assets up to the value of one NRB (£325,000). This was a common arrangement between spouses and civil partners prior to 2007 where the NRB could NOT be transferred on the surviving spouse’s death because it allowed the first to die to use their NRB. Since October 2007 a spouse or civil partners NRB has been transferable, meaning this type of arrangement is less tax effective than it used to be. There are still other reasons for using this type of trust, so seek professional advice on whether yours is still required.


Reasons you might review your Will:

1. Changes in Tax Law
2. Introduction of the RNRB - Residential Nil Rate Band
3. Birth of a child or grandchild
4. Change of address
5. Change of executors/trustees
6. Marriage
7. Divorce
8. Receiving an inheritance
9. Any other material change in circumstance

You should review your Will every 3-5 years and always store it safely


Contact Society of Will Writers Member - Alan Moran

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Readers should not rely on, or take any action or steps, based on anything written in this guide without first taking appropriate advice. Interface Financial Planning Ltd cannot be held responsible for any decisions based on the wording in this guide where such advice has not been sought or taken.