S144 Reading back ( includes minor beneficiary)

Trusts Discussion
1

I have an elderly client (divorced and with all adult children) who wants to leave the residue of a large estate (including the main residence) in a discretionary trust due to disputes among his children. The primary beneficiaries of the trust are his children. In case any of his children predecease him leaving a child, their share will go to that child. Other beneficiaries include his siblings.

To claim RNRB, the trustee can use s144 IHTA (if the family dispute is resolved) within 2 years of death to write back into the estate.

My query is: if any of his children predecease him leaving a minor child, will it be possible to use s144 IHTA to write back and distribute to his children/minor grandchildren?

I appreciate any thoughts.

Hasan Ghaffoor
Apex Estate Planners

2

Provided that no intertest in possession exists before the date of the appointment, and the appointment in favour of the children/minor grandchildren is validly exercised with 2 years of the testator’s death, then I would expect s.144 to apply.

Paul Saunders FCIB TEP

Independent Trust Consultant

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