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RNRB and annuity guarantee periods

benjaminfabibenjaminfabi Moderator
in Technical stuff

Hi,

Has anyone checked whether the probate value of the future guaranteed payments on an annuity count for RNRB tapering?

And, if they do, would the treatment be different whether left to a spouse/dependant or any other beneficiary?

Benjamin Fabi 
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Comments

  • richardgoughrichardgough Member

    Hi Ben
    Can't see why it wouldn't. It's an asset of the estate, and it's the total gross estate value that is the starting point for the RNRB taper.

    Then you look at who is benefiting from the estate to see if you have a qualifying beneficiary and a qualifying estate amount.

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  • les_cameronles_cameron Member

    RNRB is based on the value of the estate (E in legalese) after liabilities but before reliefs and exemptions.

    So, the probate value is in estate so impacts RNRB and it doesn't matter who it goes to as whether it is exempt or not is immaterial.

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  • benjaminfabibenjaminfabi Moderator

    Thanks both. Les that's what I was assuming, I was looking for that magic bit of text that confirms something that should be inferred by its omission as an exemption!

    RNRB planning on first death is such a pain.

    Benjamin Fabi 
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