I have a client who owns a number of rental properties that all have grown significantly in value since purchase. He wants to put some of these into a lifetime discretionary trust to reduce his IHT estate liability. Beneficiaries will be his adult sons and the trust would be settlor excluded. The properties have current loans on them. I’ve been advised that the equity of these properties can be put into trust through a deed of assignment and that when a restriction is placed on the property at the Land Registry this is when CGT will be triggered. Is there any reason why holdover relief would not be available in this situation?
Thanks very much in advance.
Trent Wills & Estates