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?
Child & Child
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)
Greene & Greene