Q&As

A life interest in residuary estate is left to H for life and thereafter to descendants of H and W. H wishes to release part of their life interest, but not to have it vest immediately. Does it fall within the relevant property regime until H dies and, therefore, attract a lifetime inheritance tax (IHT) charge?

read titleRead full title
Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 31/10/2018

The following Private Client Q&A Produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • A life interest in residuary estate is left to H for life and thereafter to descendants of H and W. H wishes to release part of their life interest, but not to have it vest immediately. Does it fall within the relevant property regime until H dies and, therefore, attract a lifetime inheritance tax (IHT) charge?

The tenant of a life interest is entitled to terminate that interest during their lifetime, and the trust may also contain terms allowing the interest to be terminated (eg on a re-marriage of the life tenant). Regardless of whether the life tenant or the trustees terminate the life interest, there may be inheritance tax (IHT) considerations.

The relevant property regime provides that for trusts created on or after 22 March 2006 any property in which there is no qualifying interest in possession is relevant property for the purposes of section 58 of the Inheritance Tax Act 1984. The trust, therefore, is lia

Related documents:

Popular documents