Commentary

I5.549 Tax implications of TBMs—transfers out of the trust

IHT, trusts and estates

I5.549 Tax implications of TBMs—transfers out of the trust

I5.549 Tax implications of TBMs—transfers out of the trust

Where settled property ceases to be property within the trusts for bereaved minors (TBM) regime there is a charge to tax1.

There are three exceptions to this.

Minor becomes entitled

There is no charge to IHT upon the bereaved minor attaining the age of 18 or becoming, under 18, absolutely entitled to the settled property, its income and any accumulated income2.

This is the fulfilment of the main capital trust of the intestacy statutory trusts for issue3, and the capital trust contemplated where a TBM arises under a Will, the criminal injuries compensation

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