I am instructed by elderly parents with a disabled adult daughter who lives with them.
They wish to create a Inter Vivos Disabled Beneficiary Trust and put half share of the family home into it.
I understand that as a DPT this would not attract a Lifetime IHT charge but would it be classed as a GROB? I recall it being exempt from GROB but I cannot find the legislation.
Many thanks
Hi Jodi,
From reviewing the HMRC manual, it seems that, unless the trust was set up by the disabled person for themself, it will be a potentially exempt transfer:
Regarding there being an exemption allowing parents to put their home into a disabled persons trust for their children, continue living their and not have the gift treated as a gift with reservation, I do not believe there is any such exemption. HMRC refers to two situations where the GWR rules do not apply: exempt transfers and transfers of an excluded type, and, from clicking on those links in the below link, neither list any such exemption:
It may be that you are thinking of the exemption that applies where the donor becomes infirm, this was unexpected and occupation amounts to reasonable provision for them:
The GROB rules apply where an individual disposes of property by way of gift, rather than where an individual makes a transfer of value
