One trust deed, two Settlors

Trusts Discussion
1

I have a 2010 discretionary trust deed in front of me, by which H & W have settled their jointly owned home.

The Deed excludes them from benefit, but they carried on living at the property until they each moved out to residential care (so GRoBs that have now ended).

I am looking at the IHT and CGT implications for the trustees (not the Settlors) and am thinking along the following lines:

  1. for IHT purposes it is two settlements, each with its own NRB;

  2. for CGT purposes, it is probably one trust, with only one annual allowance at the trust rate;

  3. for TRS purposes - should it be registered as one trust or two? I am leaning towards one registration

Am I barking up the wrong tree? It is a Friday at the end of a long week and I am doubting myself!

2

  1. Correct IHTM42253 - The settlor: more than one settlor - HMRC internal manual - GOV.UK (www.gov.uk)

  2. If it is one trust deed then it would be one settlement for CGT CG33280 - Basic terms of trust law as applied to CGT: One settlement or several? - HMRC internal manual - GOV.UK (www.gov.uk) but just check Roome v Edwards

  3. Again one trust deed implies one set of trustees and beneficiaries so one registration TRSM32040 - Registration: contents: information required: contents: settlor details - HMRC internal manual - GOV.UK (www.gov.uk)

Happy Friday

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