I have been asked to advise on a 1997 settlement by which the settlor gave her freehold property to the trustees to hold on protective trusts to pay the income to herself and thereafter the property would pass outright to her children.
There has been no divesting act so the trust is ongoing. The settlor is still alive but is elderly and has recently moved permanently into a nursing home.
Can anyone comment on what the likely IHT position will be upon the settlor’s death, please?
Also, am I correct in saying to the local authority that we do not need to include the capital value of the property in any financial assessment of the settlor’s assets for care fees purposes?
The settlement was made over 20 years ago when the settlor was in fine health and there was no contemplation at that time that she may need to go into residential care.