Commentary

I12.808 Breaking trusts

IHT, trusts and estates

I12.808 Breaking trusts

I12.808 Breaking trusts

The extension in 1987 of the potential exemption rules to the lifetime termination of an interest in possession has provided much more scope for breaking and varying trusts, subject to the CGT problems discussed in I12.803.

It should be noted that if a variation involves the partition of a trust fund between life tenant and remainderman, the result will normally be that prior to the variation the life tenant's estate includes the entire fund in which his interest subsists, whereas following the variation it includes the fund net of the amount used to 'purchase' part of the remainderman's

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