Q&As

Where the deceased's Will directs an NRB legacy to a pre-existing settlement (a pilot trust), would an appointment of this legacy to a surviving spouse within two years of the date of death qualify as an appointment of property settled by Will for the purposes of s 144 of IHTA 1984?

read titleRead full title
Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 23/05/2016

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:

  • Where the deceased's Will directs an NRB legacy to a pre-existing settlement (a pilot trust), would an appointment of this legacy to a surviving spouse within two years of the date of death qualify as an appointment of property settled by Will for the purposes of s 144 of IHTA 1984?

Where the deceased's Will directs an NRB legacy to a pre-existing settlement (a pilot trust), would an appointment of this legacy to a surviving spouse within two years of the date of death qualify as an appointment of property settled by Will for the purposes of s 144 of IHTA 1984?

A 'pilot trust' is a trust set up during the lifetime of the settlor, ordinarily as a discretionary trust in order to provide the necessary flexibility for its purpose. That purpose is to try and circumvent inheritance tax provisions in respect of 'related trusts', ie trusts that are all established at the same time. The relevance of the relevant trusts rule is that such trusts all share one nil rate band for inheritance tax purposes. A pilot trust is usually set up some time

Popular documents