Contractual Inheritance and Trusts

Trusts Discussion
1

I would be interested to hear whether members have any experience analysing foreign inheritance contracts to assess whether they would constitute settlements under s.43 IHTA 1984, and HMRC’s approach to this.

In this case I am dealing with a Latvian contract which has some of the hallmarks of a settlor-interested life interest trust: the legal owner of the asset contracts that it shall pass to the other party on death, and in the meantime the owner may not alienate, pledge of encumber the asset without the other party’s consent.

Tobias Gleed-Owen
Hewitsons LLP

2

No experience I’m afraid but if you would rather avoid a settlement, another analysis might be to compare it to the position of assets under mutual wills following the death of one party - the survivor retains the assets but is obliged to leave them to the persons stated in their will.

Andrew Goodman
Osborne Clarke LLP