Commentary

I5.206 Transitional serial interest (TSI)

IHT, trusts and estates

I5.206 Transitional serial interest (TSI)

I5.206 Transitional serial interest (TSI)

While settled property is subject to a transitional serial interest (TSI) it will not be subject to the relevant property charging regime described in Division I5.3.

There are three sub-categories of TSI1:

  1.  

    (a)     an interest in possession to which a person becomes entitled during the period 22 March 2006 to 5 October 20082 (referred to here as a 'general TSI')

  2.  

    (b)     an interest in possession to which a person becomes entitled on the death of his or her spouse or civil partner on or after 6 October 20083 (referred to here as a 'spouse TSI'); and

  3.  

    (c)     an interest in possession in a pre-22 March 2006 contract of life insurance4 (referred to here as a 'life policy TSI')

The general TSI

To fall within the first sub-category of TSI, the following conditions must be met for the relevant interest in possession ('the current interest')5:

  1.  

    (1)     The settlement commenced before 22 March 2006 and, immediately before 22 March 2006, the property then comprised in the settlement was property in which a person was beneficially entitled to an interest in possession ('the prior interest')6.

  2.  

    (2)     The prior interest came to an end at a time on or after 22 March 2006 but before 6 October 20087.

  3.  

    (3)     The person (or some other person) became beneficially entitled to the current interest at that time8.

  4.  

    (4)     It is not a bereaved minors trust (I5.546) or a disabled person's interest (I5.207)9.

At least two questions arise from these conditions.

The first is whether

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