Commentary

I5.142 Effect of dispositive powers on an IIP

IHT, trusts and estates

I5.142 Effect of dispositive powers on an IIP

I5.142 Effect of dispositive powers on an IIP

The term 'dispositive powers' is used to mean powers which affect or determine the destination of income or capital, or the beneficial interests which subsist from time to time in them.

The term is used here in contrast to administrative powers, which are considered in I5.143.

Dispositive powers may be special or general, and special powers may be fiduciary (as with ones to be exercised by the trustees from time to time of the settlement) or not (as with ones to be exercised by the life tenant in favour of his own children). Although these distinctions can be very important in many contexts, they have little or no importance for IHT purposes.

It should be noted, however, that if there is a general power exercisable over property which is not settled property, that property will be treated for IHT purposes as if it formed part of the estate of the person who possesses the power1, whereas settled property2 subject to a general

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial