I am dealing with two discretionary trusts from an estate (testator died in 2017) where under the terms of the Will one quarter of the residuary estate was left into a Discretionary Trust for the granddaughter, a quarter then went absolutely to the grandson and half to the son. The son varied the Will so as to place £325k of his half share into a Discretionary Trust. So the result is that we have approximately £250k in granddaughter’s Discretionary Trust which she would like to continue and to be loaned out to her. We also now have £325k in the son’s discretionary trust which he would like to continue with and be loaned out to him to assist his inheritance tax planning on his estate. I just want to make sure that these be taxed on the 10 year anniversary as related settlements. The potential beneficiaries of the two trusts are the same so I am of the opinion that they would be even though one has been made via a Deed of Variation by the son. I am not missing anything here am I ?
Cartmell and Co Solicitors