Mother died leaving residue to son. Looking at a DOV to direct part of residue into disc trust for benefit of family (which will include son as a potential beneficiary as he may or may not need access later in life) decd settlor for iht son settlor for income tax. 10 year charges and exits will not benefit from a full nil band as mother had failed pets in 7 years before death. As an alternative can they do DOV to create an IIP for grandchildren (all adults). From an IHT perspective I assume this would qualify as an IPDI and value would sit in their estate and if son recd and capital PET by them so avoids exit charges - understood that any income still on son altho may invest in bond which produces no income in any case - thank you
It sounds like a sensible plan to me. It’s probably what I would recommend.
Paul Davies
Clarke Willmott LLP