I am aware that s59(1) of the IHTA 1984 treats assets in a lifetime IIP trust created before 22 March 2006 as a “qualifying interest” and therefore part of the estate of the beneficiary with the interest in possession.
I am not aware of any historical restriction on this - eg for a IIP Trust created in the 50s or 60s. But I was just wondering whether there were any issues lurking which I may not be aware of under old Trust Deeds. Are they treated in the same as any other lifetime IIP created before 22 March 2006?
Paul, I’m surprised no one has yet replied to your query . As far as I am aware as long as there is an interest in possession involved the fact that the trust was created many years ago does not alter the position and aggregation will apply. I have just been involved in a case where the trust was created in 1945 and the life tenant has only died in the last year. As it happened her own Estate was less than £100 net but the trust fund which comprised agricultural property was valued at over a million. As agricultural relief applied the trust did not suffer any tax as the deceased had 2 NRBs available.
Like Patrick I understand that as long as there is a Qualifying Interest in Possession the Trust Fund will aggregate. However, if it was a life interest in favour of the spouse the spousal exemption can apply where the trust was created under the old Estate Duty regime (Sch 6 IHTA)