Is the nil rate band trust/ will trust still relevant?

On first sight there doesn't look to be many reasons for retaining the nil rate band trust (Will trust) but the following are some of the issues that mean that a nil rate band trust might still be desirable:
Avoiding the local authority change

There may be a desire to avoid assets being available to the local authority in the event of the survivor going into care. By leaving assets to a trust on the first death those assets will not count as part of the surviving spouse´s resources for the purposes of the local authority charge. Indeed, the split ownership of certain assets between the trust and surviving spouse may reduce the value of the assets in the hands of the surviving spouse- for example in the case of a private residence.

Using Loans

Further IHT savings could be secured by the trustees of the Will trust making loans to the surviving spouse if and when funds are needed which create debts and so reduce the taxable estate of the survivor on his/her subsequent death.
Expected high increase in asset value
It may be felt that investments made subject to the Will trust on the first death will increase in value at a greater rate than the increase in the nil rate band.

Concern over widow/ers future re-marriage

The testator may wish to ensure that his or her assets (in this example at least to the value of the nil rate band) pass to his or her children after the death of the widow/er.

Even if a discretionary Will trust does come into existence on the first death and, after the first death, this is not required there would, within 2 years of death, be scope to appoint absolutely out of that discretionary trust and achieve the same IHT results as if the asset had passed directly under the Will. Care must be taken that such appointment is made at least three months after the death.

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