The deceased left property he hoped would attract BPR to a discretionary trust. The value is substantial. For a number of reasons the executors do not yet have agreement as to the BPR claim, and the 2 years is running out.
Do members have experience in trying to expedite such a claim, short of chasing letters etc?
If no agreement is reached before the 2 years is up, an appointment to the widow will be necessary, outright or on a revocable life interest. She can then gift the property, or it can be appointed, to the children in the hope she will survive 7 years (as it is anticipated it will be sold before then-so no BPR on her death, unless the proceeds are invested in more BPR assets and she was entitled to BPR when the gift to the children is made).
This raises the risk of CGT on the gift/appointment (unless this can be held over if BPR is applicable,) and the widow may not survive 7 years, so it is far from ideal.
If it is necessary to go down either route, do members have experience as to whether HMRC may challenge the appointment/ gift, or the appointment on revocable life interests and appointment to the children, under GAAR or associated operations or other anti-avoidance measures, and say it was effectively an appointment to the children out of the trust for iht purposes, and should be taxed accordingly on the deceased’s death? Is one route less likely to be attacked than another?
Simon Northcott