Commentary

I5.1039 Trusts with vulnerable beneficiaries—election and claims

IHT, trusts and estates

I5.1039 Trusts with vulnerable beneficiaries—election and claims

I5.1039 Trusts with vulnerable beneficiaries—election and claims

Vulnerable person election and claims—introduction

Relief under these provisions is only available if a vulnerable person election is made jointly by the trustees and the vulnerable person. Only when such an election has been made and is effective can the trustees make a claim for the relief for a particular tax year.

Vulnerable person election

Where trustees hold property on qualifying trusts (see I5.1036) for the benefit of a vulnerable person (see I5.1035), they may make an election jointly with the vulnerable person (a vulnerable person election)1.

If the vulnerable person is incapable of making the election, it can be made by someone legally entitled to do so, for example a parent or guardian on behalf of a relevant minor, or on behalf of a disabled person by his receiver or deputy2 or an attorney under an enduring or lasting power of attorney3.

A separate election is required for each vulnerable person for whom the trustees wish to claim the special relief4.

A vulnerable person

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