Has the PBR sounded the death knell for NRB discretionary will trusts?
• Undoubtedly NRBDTs will plummet in popularity. • It has been argued that the NRBDT remains preferable because (1) the transferable NRB may be abolished in the future; (2) using a NRBDT on the first death allows time to consider matters fully when administering the first estate and encourages the survivor to seek legal and tax advice which she might not otherwise have done. However, this argument ignores the fact that the continued efficacy of say debt and charge schemes cannot be guaranteed with 100 per cent certainty. • Our view is that clients will overwhelmingly opt for the simplicity and the much more modest legal and administrative cost of leaving their NRB intact on the first death and, where life expectancy warrants such, more use will be made of PETS by the survivor in place of gifts to non-exempt beneficiaries on the first death. NRB trusts will still be useful in the following cases: • Where the testator (following the death of a spouse) has two NRBs. He or she cannot acqui
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