If a discretionary trust excludes the settlor but includes the settlor’s spouse it will be settlor interested under section 625 ITTOIA 2005. However, once the settlor dies the wife becomes the widow. Section 625 specifically excludes “the widow or widower or surviving civil partner of the settlor” from the definition of spouse.
Therefore, does a trust which is settlor interested during the settlor’s life because his wife is included in the definition of discretionary beneficiaries cease to be settlor interested on his death because that wife is now his widow?
Standley & Co