Commentary

I5.1316 Beneficiary becomes absolutely entitled to settled property

IHT, trusts and estates

I5.1316 Beneficiary becomes absolutely entitled to settled property

I5.1316 Beneficiary becomes absolutely entitled to settled property

Losses

When a beneficiary becomes absolutely entitled to settled property as against the trustee, the assets to which he becomes so entitled are deemed to be disposed of at market value by the trustee, in his capacity as trustee under the settlement, and to be immediately reacquired by him, also at market value, in the different capacity of bare trustee for the beneficiary who is absolutely entitled1 — see I5.1017. Accordingly, at that time the beneficiary is deemed to have acquired the assets for a consideration equal to market value2.

If the deemed

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