Nil-Rate Band Trust: Trust Law Definition

A trust designed to utilise the inheritance tax nil-rate band (currently £325,000) without triggering IHT. Historically used between spouses to preserve both nil-rate bands. Less common since 2007 when transferable nil-rate band was introduced, but still used in some planning scenarios.

This definition is part of the Equity Steward Trust Law Glossary — a plain English reference for UK families and trustees.