Commentary

I3.753 Settlement on interest in possession trusts (Eversden schemes)

IHT, trusts and estates

I3.753 Settlement on interest in possession trusts (Eversden schemes)

I3.753 Settlement on interest in possession trusts (Eversden schemes)

There are arrangements in existence based on the principles considered in Eversden1. This case established, in essence, that where a gift is made by a donor to his or her spouse, such that the gifts with reservation of benefit provisions are disapplied in relation to that gift by virtue of FA 1986, s 102(5) or 102C(2), the provisions continue to be disapplied even if the subject matter of the gift subsequently passes (other than by a gift made by the spouse) to another individual and the original donor and his spouse continue in occupation.

Planning in reliance on this point became relatively widespread as the Eversden case proceeded through the courts.

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