Commentary

I12.708 Divorce settlement

IHT, trusts and estates

I12.708 Divorce settlement

I12.708 Divorce settlement

Although not all lump sums paid on divorce will be fully covered by the available inheritance tax exemptions – for example a generous offer may be made in the interests of preserving some goodwill between the parties – in most cases a lump sum payment will be exempt from inheritance tax by virtue of the rules concerning dispositions not intended to confer gratuitous benefit (I3.141)1. Any lump sum or other transfer of assets covered by this exemption might therefore be put into trust by the other party and for the next generation, rather than being an outright

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