Q&As

The deceased parties were husband and wife. W died first and left a legacy of a nil rate band to a discretionary trust, of which H was a beneficiary. W's executors wished to bring the trust to an end by appointing the balance to H. They completed the IHT forms as if H had received W's estate and paid the funds into H's account. H died a few months later. The executors would like to prepare a Deed of Appointment to bring W's will trust to an end by giving the funds to H's estate. Can this be done?

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Published on LexisPSL on 03/11/2020

The following Private Client Q&A provides comprehensive and up to date legal information covering:

  • The deceased parties were husband and wife. W died first and left a legacy of a nil rate band to a discretionary trust, of which H was a beneficiary. W's executors wished to bring the trust to an end by appointing the balance to H. They completed the IHT forms as if H had received W's estate and paid the funds into H's account. H died a few months later. The executors would like to prepare a Deed of Appointment to bring W's will trust to an end by giving the funds to H's estate. Can this be done?

The deceased parties were husband and wife. W died first and left a legacy of a nil rate band to a discretionary trust, of which H was a beneficiary. W's executors wished to bring the trust to an end by appointing the balance to H. They completed the IHT forms as if H had received W's estate and paid the funds into H's account. H died a few months later. The executors would like to prepare a Deed of Appointment to bring W's will trust to an end by giving the funds to H's estate. Can this be done?

In this response we do not consider the UK tax implications of any variation of the Will trust or W's estate.

The key issue is whether the trustees of W's Will trust had power to distribute the trust funds to H during H’s lifetime by making a payment into H’s bank account but formally documenting the payment only after H's death.

We refer you to the following extract from Commentary: ARTICLE 57 General principles applicable to powers of trustees: Underhill and Hayton [57.1], in paragraph

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