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.
Bells Solicitors Ltd