I am instructed by X to draft an appropriate clause which will qualify for the reduced rate of IHT. She does not wish for the name of the charitable beneficiary to feature in the will as she knows wills are public etc. It’s therefore vital that the HST works to secure that reduced rate.
She might be persuaded to leave the sum to trustees to apply for charitable purposes at their discretion or the whole estate on a DT etc., but…
The partners of my firm are appointed as trustees. I am aware of the communication requirements in order for HSTs to be valid and that communication can take place via an agent (i.e. me?). I will advise that X prepares a side letter to her Trustees giving the name of the charitable beneficiary. Would it be best practice or pedantic to inform all the equity partners prior to execution that they will be obliged to follow X’s wishes?
When applying for the reduced rate of IHT, presumably the trustees will need to disclose the identity of the charitable beneficiary to HMRC. Can they do this? I suspect we can get X’s written consent to do so…
Any thoughts or observations appreciated.