I am instructed in connection with the administration of the estate of the life tenant of an old (1992) IIP trust and the formalities for ending the trust. The life tenant’s free estate is valued at around £20,000 and a Grant of Probate is not required to deal with this. The aggregable trust fund is valued at around £200,000 and so I am working on the basis that it will be necessary to submit IHT400 even though, as said, we do not need a Grant of Probate? I assume also that IHT100 will be required in relation to the trust. I would be grateful for your comments as to whether this is correct and also whether any other documentation is required to formally reflect the ending of the trust and transfer of the trust fund to the beneficiaries.
You will need an IHT400 signed by the Executors reporting the Trust as it aggregates with the estate, but as the sum is less than £260,000 you should not need an IHT100 to wind up with HMRC. I would just put in the additional notes that the trustees are not required to lodge form IHT100 as the trust value is £200,000 being less than 80% of the NRB (£260,000) and no tax is payable
If the trustees are different they may want formal clearance in which case fill in IHT100 and the clearance part.
The trust automatically vests at the date of death of the life tenant in the beneficiaries so all you need is to update at HM Land Registry by way of a TR1 from the Trustees to the Beneficiaries If cash based the trustees can just appoint out to the beneficiaries.
You may just want to do a Deed recording that as the IIP has ended the trustees now hold on a bare trust for the beneficairies and will be transfering the funds/assets
I stand to be corrected, but I think that you are required to submit an IHT100 (even where the trust fund value is such that it would normally be excepted), where an IHT400 has been submitted for the estate.