Commentary

I12.1145 Where the testator's spouse or civil partner is intended to benefit from or inherit the business or agricultural property

IHT, trusts and estates

I12.1145 Where the testator's spouse or civil partner is intended to benefit from or inherit the business or agricultural property

I12.1145 Where the testator's spouse or civil partner is intended to benefit from or inherit the business or agricultural property

Where the testator wants his spouse or civil partner to be able to benefit from business or agricultural property after his death, but not necessarily to own it, a discretionary trust of the property would be a way of taking advantage of the business or agricultural relief on the property on his death and keeping the property out of the taxable estate of the spouse or civil partner, while enabling the spouse or civil partner to benefit from the income. This is not an approach to adopt where the property is, eg agricultural land which it is intended that the trustees will permit the spouse or civil partner to occupy or use in carrying on the spouse's or civil partner's own business within two years of the testator's death, because that might have the effect of conferring an IPDI on the spouse or civil partner and thus including the property in the spouse's or civil partner's taxable estate (see I5.147 and I4.432).

Where it is necessary or desirable for the testator's spouse or civil partner to have after the testator's death an absolute

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial