Commentary

I3.312 Settled property as PETs (post-2006)

IHT, trusts and estates

I3.312 Settled property as PETs (post-2006)

I3.312 Settled property as PETs (post-2006)

With effect from 22 March 2006 the following interests are eligible as a potentially exempt transfer (PET)1:

  1.  

    •     A gift into a qualifying interest in possession (QIIP) — these are certain interest in possession trusts where the property subject to the trust continues to be treated for IHT purposes as if it were the property of the person entitled to the interest. In relation to these it is possible for there to be a PET, as described in more detail below

  2.  

    •     A gift into a disabled trust. A transfer is a gift into a disabled trust to the extent that the value transferred is attributable to property which, by virtue of the transfer, becomes settled property to which IHTA 1984, s 89 (trusts for disabled persons) applies2, and

  3.  

    •     A gift into a trust for bereaved minor (TBM) on the coming to an end of an immediate post-death interest.

  4.  

    A transfer is a gift into a TBM on the coming to an end of an immediate post-death interest (IPDI) to the extent that the value transferred is attributable to settled property that becomes property to which the TBM provisions apply (see I5.102)3), provided that it happens during the life of the person beneficially entitled to the IPDI and the IHTA 1984, s 71A trust arises under the same settlement as the IPDI4

For further information on disabled persons' trusts and TBMs see I5.207 and Division I5.5 respectively.

The wording of the definition of such

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