Commentary

I3.313 Settled property as PETs (pre-2006)

IHT, trusts and estates

I3.313 Settled property as PETs (pre-2006)

I3.313 Settled property as PETs (pre-2006)

Before 22 March 2006, transfers involving settled property could be potentially exempt transfers (PETs) if they were:

  1.  

    (a)     a gift into an accumulation and maintenance (A&M) trust or a disabled trust1.

  2.  

    (b)     settled property subject to an interest in possession in relation to transfers after 16 March 1987 and before 22 March 2006.2

Transfers into disabled trusts could also qualify as PETs under the general interest in possession rules (see (b) above), as such trusts were treated as if they were interest in possession trusts3. Similarly the termination of disabled trusts, during the life of the relevant disabled person, was capable

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