Husband and wife have each established discretionary settlements in which the spouse is a potential beneficiary.
The proposal is that capital distributions from each trust will be made to the beneficiary spouse. Those funds will then be used to repay a joint mortgage.
Would this be classed as a gift with reservation as per Example 2 of https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm14393 ?
TFO Tax LLP