Hi, sorry I see there has been lots of discussion about this!
I have a single woman with a property (that she occupies) worth more than her nil-rate band so a LI trust has been created (in 2016) over £325k and there is a charge on the LR in favour of the Trust. The settlor is a trustee, along with the Longs but she has power to appoint and remove trustees so presumably that’s that for the trustee issue, unless I’m missing something. She can just execute a deed of appointment and removal without their consent being required?
If she were to undo the arrangement (as she was under the impression there would be an inheritance tax saving so without that doesn’t see the point due to the value of her other assets) am I correct in thinking that she has used her nil rate band in any case to set up the trust. So if the arrangement is undone using powers of appointment she could end up paying more tax if she were to die before 2023? Or is there a mechanism in the IHT act to allow this, making it a tax neutral action?
I’ve searched and looked and tied myself in knots. Please help!
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