A client has been advised to enter into a DOV in relation to late mother’s Will (only 8 days left until the second anniversary of death) so that his share of the residuary estate (approx £240,000) would instead be held on the terms of a discretionary trust. The client tells me he would be included in the class of potential beneficiaries together with his wife.
I highlighted the settlor interested tax consequences of this plan of action but he wishes to proceed regardless.
If the trust deed contained an express provision for beneficiaries to be removed and this was used at a later date to remove the client and his spouse as potential beneficiaries, would this then negate the settlor interested tax consequences for the trust from the date of removal onwards ?
Sampson Coward LLP