reversing a discretionary trust

[malik]

Hi all,

Say I want to create a discretionary trust and put my house in it. If after valuing it, and submitting the trust/tax papers to HMRC, the VOA does not agree and thinks it should be more-am I able to cancel/reverse the trust if the tax liability becomes more than expected?

[Loza]

If you live in your house there is no point in putting it into a DT, since it is settlor interested and will be a GWR, I cannot see any basis for reversing the transaction.

[malik]

I won't be living in it though. This is besides the question. The question is:
After creating a discretionary trust, is it possible to cancel it so that the settlement tax (over the IHT limit) does not become a liabilty if it is more than expected?

Thanks

[Loza]

If the question is hypothetical the answer is no
If it is a real issue, you need a good adviser