Commentary

I3.327 Gifts in consideration of marriage and settled property

IHT, trusts and estates

I3.327 Gifts in consideration of marriage and settled property

I3.327 Gifts in consideration of marriage and settled property

As regards settled gifts (or any other gifts that are not outright gifts), they do not qualify for the exemption at all unless the persons who are or may become entitled to any benefit under the gift are confined to being persons who are among one or more of the following categories1:

  1.  

    (a)     the parties to the marriage (or civil partnership), any child of either or both of the parties to the marriage, or a spouse of any such child

  2.  

    (b)     persons becoming entitled on the failure of trusts for any such child where the trusts for such child are ones where the trust property would vest indefeasibly on the attainment of a specified age, or on the attainment of such an age or on some earlier event; or persons becoming entitled on the failure of any limitation in tail.

  3.  

    Trusts will still qualify, however, even if there is a power of appointment to which an entitlement mentioned above is subject, if the power of appointment is only exercisable in favour of a person falling within (a) above or (c) below

  4.  

    (c)     a subsequent spouse, or any child of

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