Commentary

I5.363 Same-day additions example

IHT, trusts and estates

I5.363 Same-day additions example

I5.363 Same-day additions example

George creates two discretionary trusts with capital of £100 each for his two adult children, one dated 1 December 2013 and the other dated 2 December 2013.

He dies on 5 May 2017 and by his Will he leaves £500,000 to each trust.

£100,000 is appointed from the first trust to the beneficiary on 29 December 2018.

The IHT charge on this is calculated as follows:

Assumed chargeable transfer
Value of settlement at commencement£100
Value of relevant property added after settlement commenced£500,000
Initial value of settlement dated 2 December 2013£100
Value of 'same-day addition'

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