Commentary

I3.112 Loss to the estate

IHT, trusts and estates

I3.112 Loss to the estate

I3.112 Loss to the estate

The notion of causing loss to the estate of the person making the disposition is central to the concept of a transfer of value. It defines not only what is a transfer of value but also its extent and, by inference, its timing (see I3.131). 'Estate' here is the aggregate of all property to which a person is beneficially entitled1, but excluded property (see I3.217) leaving the estate as a result of a disposition is left out of account in assessing whether and how far it is a transfer of value2, and settled property in which a person has a qualifying interest in possession (QIIP) is expressly part of his estate (see I5.102).

A disposition which causes no loss, such as a sale for full value in cash or the settlement of property or trusts which gives the settlor a QIIP in all the property settled, cannot be a transfer of value.

A disposition which causes loss may still be excluded from being a transfer of value by one or more of the statutory provisions considered in I3.141–I3.160. For example, Bob sells a old painting to Charlie for a a few pounds. It later transpires that the painting is a masterpiece and worth many thousands of pounds. Whilst there was a loss to Bob's estate (a

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