Appointing out of a Discretionary Trust Within 2 years

If I am bringing a Discretionary Trust to an end within two years from the date of death, with the idea of re-routing the assets to the surviving spouse and allowing the Nil Rate Bands to be transferable, does the Deed of Appointment need to specifically refer to section 142(1) of the Inheritance Tax Act 1984, in order to have the writing back effect?

Many thanks.

Martyn Dixon
Harold Bell Infields & Co

No. That only applies to DOVs. S144 applies to the appointment automatically

Simon Northcott

No; the “writing back” effect under s144 is automatic.

Malcolm Finney

In the case of a Discretionary Trust created by the Will the Deed will need to refer to s144, not s142.

Graham Barry
New Quadrant Partners

No. s144 automatically apples whether you refer to it or not, as long as the criteria are met.

Kamlesh Samji
KRS Estate Planning

There is no need to refer to s.142 because s.144 will apply, and s.144 does not require the instrument to specifically refer to the statute.

Tobias Gleed-Owen
Hewitsons LLP