Commentary

I5.201 Introduction to qualifying interests in possession (QIIP)

IHT, trusts and estates

I5.201 Introduction to qualifying interests in possession (QIIP)

Division I5.2     Settlements with a qualifying interest in possession (QIIP)

For updates affecting this Division please see Part I0 Updates

Types of qualifying interest in possession (QIIP)

I5.201 Introduction to qualifying interests in possession (QIIP)

Trusts can be categorised differently for different reasons. For the purposes of beneficial rights, trusts usually contain interests that are either:

  1.  

    •     discretionary — a beneficiary only has a hope of enjoying the assets

  2.  

    •     fixed — each beneficiary has a known right to a specific amount of capital or income (although this interest could be contingent on some event such as attaining majority)

The second category

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