We are administering an estate where the deceased husband created a life interest Will trust in favour of his widow consisting of cash assets substantially above the nil rate band. The death occurred only a few months ago and the estate is still being administered. The Will contains overriding powers of appointment and the widow does not want to benefit from the trust. Is there anything to prevent the trustees immediately appointing the trust fund to the remaindermen (or the widow surrendering her life interest), or does a period of time need to pass and/or assets be transferred to the trustees before the trust is brought to an end to avoid automatic reading back into the Will for IHT purposes?
I realise that an intervening interest in possession prevents such reading back into the Will, so the question really is whether the interest in possession needs to be in operation for a period of time in order to achieve this.
Blanchards Bailey LLP