A dispute in an intestate estate has resulted in a settlement agreement between claimant and defendant. The settlement has been reached 3 years after the deceased’s death. The claimant is a partner who under the agreement is entitled to a life interest in a property up to a certain price purchased by the Administrator. A trust deed needs to be prepared to formalise the life interest trust and I would anticipate that the administrator will be the initial trustee and additional trustees will need to be appointed. I am conscious of the tax position for the trust as this will not be a QIIP trust. I’d be grateful for any input here as it is a situation I have not come across previously.
Whilst not answering the particular question raised, I wonder if a formal claim has been issued and served. If so, I understand that it may be possible to bring the life interest within the IHT qualifying IIP regime if the settlement is evidenced by way of a Tomlin order (which would be attached to the court’s order bringing the claim to a close).
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
Thank you, Paul. I am grateful for your input.