I am dealing with a Will Trust in which the Will states that the residue shall be held in trust to pay the income to Mrs A for life, and after her death the capital and income for her children as living at the date or her death.
A number of years later, Mrs A released her life interest by Deed. I believe this would have been a PET. The trustees then held the income of the trust for her two children but, since Mrs A was still living, the capital did not yet vest.
More than seven years later, Mrs A has now died and the capital vests with her two children, both of whom survived her.
My questions are:
- Was there a disposal for CGT in 2009?
- Is there a deemed disposal following Mrs A’s death now?
- Did the trust ever enter the relevant property regime?