S.144 Reading Back to Create a Flexible IPDI With Further Appointments within 2 years

I am administering a large estate with a discretionary trust of residue naming the surviving spouse and issue as potential beneficiaries.

I want to create a flexible IPDI in favour of the surviving spouse to attract the spouse exemption (SE). However the spouse has no need of the funds.

Aside from considerations under GAAR, is there anything that would prevent me from making the appointment, then within relatively short order (and within 2 years of the death) making appointments from it to the issue (as PETs)?

I am aware that a s.142 variation in favour of a spouse to attract SE would subsequently fail (for IHT) if appoints were made within 2 years of death, but am not aware of any similar provision if utilising s.144.

Thoughts much appreciated!

I thought one of the key advantages of s144 was that its provisions contain no anti-short term interest problem and no anti-consideration issues unlike s142.

Malcolm Finney

Thanks Malcolm, I thought so too but had never had cause to use it before.