Hi
I am dealing with a discretionary trust which was set up in 2012 with £1.
Under the terms of the Settlor’s will he bequeathed a quarter share of the residue of his estate to the trust.
The Settlor died in April 2023 and we have just sold his property which unfortunately sold for significantly less than the probate value. This has meant there is only approximately £3,000 to transfer to the trust.
The instructions are to wind up the trust and pay out the assets.
Given the modest amount, do the trustees still need to report this to HMRC and submit an IHT100?
I understood that where the transfer is for less than 80% of the nil rate band and there is no exit charge the IHT100 would not be required but would be grateful for some clarification.
Many thanks