Commentary

I5.143 Effect of administrative powers on an IIP

IHT, trusts and estates

I5.143 Effect of administrative powers on an IIP

I5.143 Effect of administrative powers on an IIP

Extensive administrative powers are usually enjoyed by trustees as a result of express or statutory provisions. The question often arises whether such administrative powers prevent an interest in possession (IIP) from existing where an interest in possession would exist if the beneficial trusts stood alone.

The test for what is an interest in possession (see I5.141) means that for an administrative power to affect by its very existence (whether exercised or not) the existence of an interest in possession it must be a power to pay expenses of some kind out of income.

Another type of problem can be whether the exercise of some particular administrative power could

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