We have a vulnerable beneficiary (daughter) who may or may not qualify for a Disabled Person’s Trust, but it will be unclear until the relevant time. Therefore we wonder whether to set up a Discretionary Trust with power to create and transfer assets to another Trust i.e. a Disabled Person’s Trust. Do members think this would work for HMRC/IHT purposes?
If it was done within the first 2 years of death would it be read back to the Will as if a Disabled Person’s Trust rather than a Discretionary Trust was created under the Will to avoid being classed and taxed under the Relevant Property Regime?
The Testator is also intending to create a life interest in her half share of the property for her husband who as Alzheimer’s Disease and we also have concerns about related trusts in this instance.
Maria Goodacre
Bells Solicitors Ltd