Commentary

I5.548 Tax implications of TBMs—transfers into the trust

IHT, trusts and estates

I5.548 Tax implications of TBMs—transfers into the trust

I5.548 Tax implications of TBMs—transfers into the trust

The consequences of settled property falling into the trusts for bereaved minors (TBMs) regime are similar to the consequences of the accumulation and maintenance (A&M) trust regime applying to settled property.

While the TBM regime applies to settled property it is not 'relevant property'1. This means that there are no periodic charges2 or exit charges3.

The fact that property in an A&M trust is not relevant property means that there is a charge to IHT4 on property ceasing to be relevant property when relevant property becomes subject to a trust within the TBM regime.

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