I have two family trusts which give the parents the income. The husband has died leaving a Will that contradicts the trust documents. Would I now follow intestacy rules?
Michelle Phillips
KTS Legal
It is the terms of the trusts that will continue to apply.
It may be that the trusts give the husband a testamentary power of appointment over the trusts. In that case, provided the power has been exercised in accordance with the terms of the trust, the terms of the will apply.
That there is any contradiction between the terms of the trust and the husband’s will cannot, of itself, cause the intestacy rules to apply.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
Not sure I follow but the deceased’s Will is irrelevant re: the Trusts as that will only deal with his own assets, not any assets held in Trust on his behalf. The Trusts will most likely need to be declared in the IHT return.
Karl Taylor
Parker Rhodes Hickmotts
Thank you. The Will leaves a discretionary trust of a property to the son and the residuary to his wife.
Therefore I have to take consideration of both the Will with the discretionary trust and the family trust which is separate from the will. Presumably I will have to complete IHT400 eventhough there will be spouse exemption apart from the property in the discretionary trust that benefits the son?
Michelle Phillips
KTS Legal
Yes, it seems likely
Also potentially IHT100 for each trust depending on the particular terms and circumstances (i.e. possibly not if they are post-2006 trusts and do not come to an end on the death). There could also be GROBs to take into account.
Andrew Goodman
Osborne Clarke LLP
Thank you. I have completed