Q&As

What options are available to an individual who wishes to leave their residuary estate in a tax efficient way on trust for their spouse for life and then to benefit charity in a flexible way with the charitable beneficiaries being chosen by their trustees? Would the residence nil rate band be available to the estate?

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Published by a UUÂãÁÄÖ±²¥ Private Client expert
Published on: 25 March 2025
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Practice Note: Will drafting—gifts to charities, in particular at the section titled 'Charitable Will trusts', considers ways in which an individual may leave assets on trust to charity.

While charitable trusts are in theory liable as relevant property for IHT, legislation steps in and exempts property held solely for charitable purposes (whether for a limited time or otherwise). See section 58(1) of the Inheritance Tax Act 1984 and Practice Note: Charities and inheritance tax.

The residence nil rate band (RNRB) is only available where a qualifying residential interest (QRI) is ‘closely inherited’ on the deceased’s death. 'Closely inherited'

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United Kingdom

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