Commentary

I5.207 Disabled person's interest

IHT, trusts and estates

I5.207 Disabled person's interest

I5.207 Disabled person's interest

While settled property is subject to a disabled person's interest it will not be subject to the relevant property charging regime described in Division I5.3.

There are four sub-categories of disabled person's interest1.

IIP disabled person's interests

Two of the sub-categories are qualifying disabled person's interests where an actual interest in possession (IIP) exists.

A trust is a disabled person's trust if:

  1.  

    •     the interest is an IIP to which a disabled person becomes beneficially entitled on or after 22 March 2006 and (for property transferred into settlement on or after 17 July 2013), if the trust secures that any of the trust income is applied during the disabled person's life for the benefit of a beneficiary, it is applied for the benefit of the disabled person2, or

  2.  

    •     the interest is an IIP for a person ('A') where3:

    1.  

      •     A is the settlor

    2.  

      •     A was beneficially entitled to the property immediately before transferring it into settlement

    3.  

      •     when the property was transferred into settlement, A had a condition that it was at that time reasonable to expect would have such effects on A as to lead to A becoming disabled (as defined below)

    4.  

      •     the settled property was transferred into

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