Commentary

I5.721 Reversionary interests comprised in settlements

IHT, trusts and estates

I5.721 Reversionary interests comprised in settlements

I5.721 Reversionary interests comprised in settlements

If a reversionary interest is itself comprised in a settlement, it will be free of IHT charges on settled property (see Division I5.3). A reversionary interest under one settlement can become part of the property comprised in another settlement.

This occasionally happens as a result of a testator settling a reversionary interest by his Will and then dying before the interest falls into possession, or by the owner of a reversionary interest making a 'generation skipping' settlement of a reversionary interest in favour of, for example, his own children.

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