This Q&A has assumed that: • the vulnerable person's trust to which the question refers meets the qualifying conditions for a disabled person's trust within sections 89, 89A, 89B and 89C of the Inheritance Tax Act 1984 (IHTA 1984) • the trustees of the discretionary Will trust exercise their power of appointment to create the disabled person's trust in a manner which meets the conditions in IHTA 1984, s 144 The legislation which determines whether, and to what extent, the residence nil rate band (RNRB) is available is set out in IHTA 1984, s 8D to 8M (inclusive). One of the conditions for an estate to be eligible for the RNRB is that a qualifying residential interest must be closely inherited—see IHTA 1984, s

A gift to an institution which has ceased to exist in the testator's lifetime, whether before or after the date of the Will, lapses unless it is saved by the registered merger provisions of the Charities Act 2011, or a general intention can be shown (it is difficult to find a general intention where the testator has taken care to identify the particular charity). However, there is authority which

The conditions for agricultural property relief (APR) from inheritance tax on agricultural property require either that the transferor has owned the land and has occupied it for agricultural purposes for at least two years or that the transferor has owned the land for at least seven years and it has been occupied by the transferor or by another person for agricultural purposes during that period, as set out in section 117 of the Inheritance Tax Act 1984 (IHTA 1984). For the purposes

The question confirms that the deceased has left her estate to her two children, A and B, in equal shares. The residue consists of a property, still registered in the name of the deceased, and a portfolio of investments worth in excess of the value of the property. The

This Q&A assumes that • there are other branches of the same charity, either in this country or elsewhere • the branch which has ceased to exist had an identity which, for charitable purposes, is distinct from that of other branches, so that the saving provisions come into play • the branch ceased to exist before the deceased’s death There are standard Will precedent clauses which are intended to protect against the lapse of a charitable gift where the particular charity has ceased to exist before the death of the testator or testatrix. It is common to find that in such a clause the executors

As a practical starting point, it is worth considering the assets in the estate and whether a grant is required to complete the administration. The validly appointed executors under the last Will (B and C) derive their authority from the Will itself, rather than from the grant, so if the estate in question is not large or complex they may be able to proceed without one,

A residence nil rate band (RNRB) is, from 6 April 2017, available as an enhancement to the existing nil rate band to reduce the inheritance tax payable on death of a 'closely inherited main residence'. The relief is given only against the chargeable transfer made on death. The query does not specify whether the gift satisfies

Section 8(1) of Inheritance (Provision for Family and Dependants) Act 1975 (I(PFD)A 1975) provides that a payment which the deceased person nominated in accordance with the provisions of an enactment, is to be treated as part of the persons net estate and can be made available for provision. This was interpreted

If the deceased paid any premiums in the seven years before their death on a policy for the benefit of someone else, the premiums may be chargeable to inheritance tax (IHT) as lifetime transfers. The ‘yes’ box in question 12 on Form IHT410

A beneficiary's interest under an implied, resulting or constructive trust may only be protected by restriction, not notice, and the Form RX1 application should generally be for a restriction in Form A. A person can apply for a restriction if they have sufficient interest in the making of the entry of the restriction. If the application is on the basis that the applicant has a sufficient interest in the making of the entry, then the applicant must satisfy the registrar that this is the

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:

The question states that the settlor transferred a property into the trust, but also that the settlor subsequently sold 'her' property and reinvested the net sale proceeds. Presumably it was the trustees who sold the property rather than the settlor (because it no longer belonged to the settlor) and, that being the case, there must have been at least two trustees to overreach the beneficial interest. The exact terms of the settlement are unclear but it is assumed from the question that those terms specify that the remainder beneficiaries are described by reference to the settlor's Will (for example 'subject to the life interest, the Trust Fund shall be held on