A client set up an inter vivos trust with a nominal sum of £10. There is an interest in possession for Settlor’s wife in priority with a discretionary trust arising on the death of the life tenant.
The Settlor died recently passing his entire estate by Will to the inter vivos trust . The question is , is this intervivos trust a relevant property trust carrying ten year anniversary charges etc , from the date on which it received the Settlor’s estate or does it only become a relevant property trust when the discretionary element kicks in. Reading the legislation , it does appear that as the life interest for the spouse does not arise within the Will but rather in a trust outside the Will, the relevant property regime is effective immediately. Any comments would be greatly appreciated.