Commentary

I12.723 Fragmentation schemes

IHT, trusts and estates

I12.723 Fragmentation schemes

I12.723 Fragmentation schemes

It is always worth considering whether it would be advantageous to split funds over a number of different settlements, rather than simply placing them all into one trust. It would be important that the settlements are made on different days, otherwise they will be related settlements and there will be adverse results in the calculation of ten yearly charges for ever after. The legislation states that the initial amount settled in one related settlement must be taken into account in the calculation of any other related settlements giving a cumulative total on which ten yearly charges arise, and vice

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