IHT – The Residence Nil-Rate Band and trusts

The Revenue has issued its guidance on the Residence Nil-Rate Band (RNRB) at https://www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band and a number of worked examples https://www.gov.uk/government/case-studies/inheritance-tax-residence-nil-rate-band-case-studies. Within the general guidance there is some discussion of the effects of the deceased’s home having been held in trust. The guidance points out that if the home had been held in trust for the deceased with an interest in possession so that it is treated for Inheritance Tax (IHT) purposes as part of his estate, the value may serve to ensure that the estate enjoys the benefit of the RNRB if it passes to the children outright.