Commentary

I12.722 Avoiding reservation of benefit

IHT, trusts and estates

I12.722 Avoiding reservation of benefit

Other IHT Planning for Trusts

I12.722 Avoiding reservation of benefit

To achieve inheritance tax savings it is essential to exclude the settlor from benefit under the trust (see Division I3.4). There is no requirement for IHT purposes that the spouse of the settlor is also excluded.

Accordingly a possible arrangement involves totally excluding the settlor from benefit under the settlement but not excluding the settlor's spouse. This arrangement is possible as the legislation1 states that a benefit which the donor obtained by virtue of any associated operations of which the disposal by way of gift is one, shall be treated

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